New York - International Automotive Components Group North America llc is to buy Collins & Aikman's Carpet & Acoustics Division (soft trim). Wilbur Ross Jr, chairman of IAC, announced the deal 20 April.
C&A's soft trim business has 16 plants in the US, Canada and Mexico and produces revenues of about $615 million, IAC said. The facilities supply automotive interior carpet and acoustic products including moulded flooring systems, accessory mats, dash insulators, package trays and trunk liners. Many of these parts are based on polyurethane materials.
"We are very pleased to incorporate Soft Trim into IAC NA. The combination of the two entities would create a North American footprint with 42 facilities and over 15 000 employees," commented Ross in an IAC statement.
"Worldwide the IAC companies will now have sales close to $5000 million per year," he added.
IAC NA started production earlier in April, as its purchase of Lear Corp.'s Interiors System Division went through. The IAC NA unit is a joint venture between WL Ross & Co. llc, Franklin Mutual Advisers, llc and Lear.
IAC units have previously bought some European and South American facilities of C&A, as well as Mitsuboshi Belting Kaseihin in Japan and Lear's European Interiors System Division.
IAC NA said it will pay $134 million, subject to adjustment, for the Soft Trim assets. Creditors of C&A will have the option to purchase up to 25 percent of the equity in IAC NA, the statement added.
The deal is subject to certain conditions and needs approval from the Bankruptcy Court overseeing the C&A Chapter 11 case. epw"