Automotive and construction supplier Continental Structural Plastics Inc. has signed an agreement to buy five sheet molding compound facilities from the exteriors unit of Magna International Inc.
CSP manufactures lightweight SMC structural components, automotive body panels and other products, with annual sales of $600 million, according to a company news release.
The deal includes Aurora, Ontario-based Magna’s manufacturing facilities in Lenoir, Newton and Salisbury, N.C.; and Saltillo, Mexico, as well as a compounding facility in Grabill, Ind. Together, the facilities employ more than 1,000 people.
CSP, based in Auburn Hills, Mich., said the acquisition will make it the world’s largest sheet molding compound manufacturer.
“We have a solid foundation upon which we are building a bigger, more competitive company,” CSP chairman and CEO Frank Macher said in a statement. “Through this acquisition, we gain significant heavy truck and consumer products expertise, as well as an expanded manufacturing footprint and broad range of manufacturing and technical capabilities.”