European auto supplier Mecaplast Group has agreed to acquire Michigan-based Key Plastics LLC in a bid to expand its global presence, according to a press release. Financial terms of the agreement were not disclosed. The deal is subject to regulatory approval.
The acquisition would provide expansion in the U.S., Germany and China for Mecaplast, the company said.
Key Plastics operates 12 manufacturing facilities worldwide, including paint facilities in six countries, including two plants in Chihuahua city. The company produces automotive interior, exterior and under-the-hood plastic components with annual sales of about US$ 415 million, which $295 million are made in the NAFTA region. It has about 3,500 employees worldwide.
Minnesota-based private equity firm Wayzata Investment Partners is Key Plastics' current majority stakeholder, which it acquired out of the supplier's second bankruptcy in 2009.
Mecaplast has continued to expand, boosted by its new majority shareholder, the United Kingdom-based private investment firm Equistone Partners Europe. Today the firm has 28 plants and eight technical centers in 18 countries and recorded 734 million euros (US$ 818 million) in sales in 2015.
The European company operates two facilities in Mexico, a plant located in the State of Puebla and another one recently opened in Guanajuato.
Mecaplast was founded in 1955 by Charles Manni in Monaco and specializes in injection molding technical parts for the automotive industry. The company makes about 170 million parts per year and is based in Clamart, France.