MELBOURNE, AUSTRALIA - Inter-national automotive plastics group McKechnie plc has acquired Melbourne-based thermoforming business Plexicor Australia Pty. Ltd. for A$29 million (US$22.6 million). Plexicor, which has operations in Melbourne and Adelaide, Australia, supplies automotive and telecommunications markets in Australia and southeast Asia.
Its major customers include automotive manufacturers Ford, General Motors and Mitsubishi, plus telecommunications companies Telstra Australia and Hong Kong Telecom.
In the fiscal year ended June 30, Plexicor had sales of A$30 million (US$23.3 million) and an operating profit of A$5.1 million (US$4 million). The book value of assets acquired by McKechnie was A$11.8 million (US$9.2 million).
London-based McKechnie has operations in England, Northern Ireland, Holland, Spain and North America. The firm manufactures plastic moldings and extruded plastic tubes for fuel and brake lines for the automotive industry.
Worldwide, its customers include Ford, GM, Chrysler, Toyota, Saab, Volvo, Rover, BMW and Jaguar.
Michael Ost, McKechnie's chief executive officer, said Plexicor provides strategic growth opportunities in Australia and Asia and is a further step in McKechnie's goal to create a worldwide supply capability for its customer base.
He said Plexicor was developing new technologies and product applications with Asian vehicle manufacturers that McKechnie will introduce to the larger North American and European markets.
Ost said Plexicor also provided McKechnie with an entry into niche plastic markets in Australia and Asia and strong growth is expected in telecommunications products. Plexicor manufactures vacuum formed plastic telephone booths and fittings.