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Grammer to acquire US supplier Toledo for US$271 million

Grammer to acquire US supplier Toledo

Grammer AG, a global supplier of automotive interior trim and commercial vehicle seats, is to acquire Toledo Molding & Die Inc. (TMD), based in Toledo, Ohio. The enterprise value for TMD will be approximately US$271 million.

The TMD Group is one of a leading specialist suppliers for the development and production of thermoplastic components in the North American automotive market. The Grammer Group says it is thus continuing its strategy of targeted acquisition of technology companies to expand its own product range and process know-how. TMD mainly develops and produces interior components for visible and non-visible applications for the automotive industry.

Grammer will acquire 100% of the shares in TMD. Completion of the transaction is subject to customary closing conditions, including regulatory approvals. The final execution is expected in the third quarter of 2018.

According to preliminary figures, the TMD Group generated annual revenues of more than US$300 million with around 1,600 employees at 11 locations in the US and Mexico.

With the acquisition of TMD, Grammer says it can further expand its position in North America and increase its share of sales in the world's second largest automobile market. In addition to the high sales growth, Grammer can profit in particular from a broad TMD production network and further expand local value added in the US. In addition, it says that TMD has excellent sales structures and development partnerships, above all with the three major US car manufacturers, but also with locally based Asian OEMs. This allows Grammer to further diversify its customer portfolio.

The TMD Group develops complex thermoplastic products, new materials and manufacturing processes with 100 engineers at its Ohio and Michigan development centres. Especially in the automotive industry, the use of such innovative materials has become increasingly important in recent years. Even today, more than 15% of a passenger car is made of plastic and plastic composites. In the new generations of passenger cars and commercial vehicles, the proportion of thermoplastic applications and components will continue to increase sharply. The use of functional and lightweight plastics reduces the overall weight, increases the freedom of design and functional integration, especially in the interior and reduces the complexity in the assembly of vehicles.

The global presence and many years of experience of Grammer as one of the leading suppliers for passenger cars and commercial vehicles offers additional growth potential for TMD, even outside the NAFTA region. The existing TMD product portfolio will in future be offered to a significantly broader customer base in the passenger car and commercial vehicle segment worldwide.

Grammer says it has found an ideal partner for the further successful continuation of its growth and innovation strategy. Grammer and TMD form a leading global supplier of process and manufacturing technology for thermoplastic components.

Based in Amberg, Grammer AG specialises in the development and production of components and systems for car interiors as well as suspended driver and passenger seats for on- and off-road vehicles. In the Automotive segment, it supplies headrests, armrests, centre consoles and high-quality interior components and operating systems for the automotive industry to well-known premium car manufacturers and system suppliers to the automotive industry. The Commercial Vehicles segment comprises the truck and offroad seats (tractors, construction machinery, forklifts) as well as train and bus seats.

With around 13,000 employees, Grammer operates in 19 countries worldwide.

(IMA)


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