Toledo, Ohio – The German automotive supplier Grammer AG doubles its presence in North America with the takeover of Toledo Molding & Die Inc.
Once the $ 271 million purchase of TMD in Toledo is completed, Grammer will generate an additional $ 300 million in sales in North America, 10 plants in the United States and one additional location in central Mexico with 1,600 employees.
Grammer currently has approximately $ 250 million in North America with five plants in the United States and two in Mexico. Grammer, based in Amberg, Germany, employs 13,000 people in 19 countries worldwide.
TMD will help the company balance its geographic footprint, Grammer officials said in a May 22 investor presentation. The company now generates 68 percent of its sales in the Europe, Middle East and Africa (EMEA) region, 18 percent in the Americas and 16 percent in the Asia-Pacific region. After the acquisition, 28 percent of sales will be in America, 59 percent in EMEA and the rest in the Asia-Pacific region.
With injection molding, blow molding and mold construction, TMD also has a strong customer and technology mix, said Grammer in a press release.
“The TMD Group is one of the leading specialists for the development and production of innovative thermoplastic components in the North American automotive market,” said Grammer. “With this transaction, the Grammer Group is consistently implementing its strategy of acquiring technology companies with the aim of strengthening its own product range and process expertise.”
Approximately 71 percent of TMD’s sales go directly to automakers and 29 percent to Tier 1 suppliers. The customer list includes Fiat Chrysler, Ford, General Motors, Honda and Nissan. Grammer said the customer base also complements its North American operations and enables it “to further diversify its customer base”.
Toledo Molding manufactures door panels, pillars, glove boxes and center console parts as well as functional, invisible parts such as ducts, front-end components, fans, coolant systems and resonators.
TMD ranked 40th in Plastics News’ 2017 North American Injection Moulders ranking with estimated sales of $ 230 million; # 27 on PN Mold Molders 2017 ranking with estimated sales of $ 75 million; and No. 37 North American mold maker with estimated sales of $ 15 million.
Grammer will finance the purchase with “debt capital at attractive financing conditions”. The deal is expected to close in the third quarter of 2018.