L. Possehl & Co.’s acquisition of TPS Technical Plastic Systems GmbH will bring together companies which specialize in the manufacture of hybrid plastic-metal components for the automotive industry.
Possehl Electronics Deutschland GmbH, based in Niefern-Öschelbronn near Pforzheim, Germany, is acquiring TPS from DT Holding for an undisclosed amount. Possehl has another subsidiary in the same field, Pretema, which is expected to collaborate with TPS.
The deal, which was announced in June, requires the approval of anti-trust authorities in Germany and Romania.
Uwe Lüders, chairman and CEO of Possehl Group of Lübeck, Germany, said in a statement: “Pretema and TPS complement each other outstandingly. The collaboration offers both companies, which will remain independent subsidiaries and retain their company names in the future, outstanding growth opportunities. The two companies can also benefit from each other in terms of technology and products and complement one another, enabling them to strengthen and expand their combined market share on a sustainable basis.”
Although the two companies will not be merged, Posshel said they have a combined workforce of 1,300 employees, and generate combined annual sales of more than 200 million euros ($265.6 million). Together they will be the largest contributor to sales within the electronics division of the Possehl Group.
Dietrich Twietmeyer, chairman of DT Holding, said: “TPS has grown strongly and profitably in recent years. I am certain that this positive performance will continue both in association with Pretema and under the Possehl umbrella.”
TPS operates two German manufacturing facilities, in Wackersdorf and Fürth, and it owns other production companies in the Czech Republic, China, and Mexico. Its injection molding expertise includes insert molding and overmolding of metal parts to produce automotive components such as electronic housings and control units.
At Pretema’s one facility, in Niefern, Germany, it uses injection molding, as well as metal stamping, electroplating and laminating technologies, to produce hybrid electomechanical components. Injection molding is used in combination with reel-to-reel processes and also for regular loose part production.
Pretema has also developed the patented ReHot technology for hermetically sealing electronics housings used in harsh operating environments where temperatures range from -40°C to 160°C. “Owing to its excellent adhesion and flexibility even at low temperatures, using the two-component Reactive Hot melts guarantees that capillary gaps between metal and thermal plastic are sealed permanently,” the Pretema website states.