Germany-based Grammer AG acquires Toledo Molding & Die, including a plant in Guanajuato
Grammer AG, a supplier of interior components for the automotive industry, announced it has reached an agreement to acquire Ohio-based Toledo Molding & Die Inc. (TMD), a manufacturer of thermoplastic components with 11 locations in North America, including one in Celaya, Guanajuato.
“With this transaction, Grammer Group is systematically implementing its strategy of acquiring technology companies with the objective of enhancing its own product range and process expertise,” said the Germany-based company in a statement. The financial terms of the deal were not disclosed.
Grammer is acquiring 100% of the share capital of Toledo Molding & Die Inc. Grammer AG will be funding the acquisition fully with debt. The acquisition is still subject to antitrust clearance and other standard closing conditions. It is expected to close the transaction in the third quarter 2018.
According to preliminary figures, TMD Group generated revenues of more than US$ 300 million in 2017 and has approximately 1,600 employees at 11 facilities in the United States and Mexico.
The Celaya facility started operations in 2015 with a US$ 26 million investment. Located in the Amistad industrial park, the plant employs more than 300 workers that manufacture interior parts and air & fluid systems for General Motors, Ford, Nissan and Honda, among other original equipment manufacturers (OEMs). The site has a production capacity of more than 80 million parts per year.
Grammer also owns two manufacturing plants in Mexico. Located in the states of Queretaro and Tlaxcala, the facilities build armrest and headrest for premium-segment automakers as well as center consoles.
According to the company, revenue from those two plants exceeded US$ 174 million in 2015, topping the previous year’s record by about 15%, while new-business orders also reached a record US$ 650 million.