Magna International Inc. plans to buy plastic and metal automotive parts producer Triam Automotive Inc. for about C$71 million (US$50.1 million).
Concord, Ontario-based Triam operates a plastic injection molding facility in Stoney Creek, Ontario, that generated about C$40 million (US$28.2 million) in sales last year, estimated David Hughes, Triam executive vice president.
Hughes said in a telephone interview that Triam plans to expand its Stoney Creek plant to accommodate new molding programs. It now operates 11 injection presses. A Triam manager said at the recent Society of Automotive Engineers show in Detroit that Triam plans to install six more presses and boost floor space at Stoney Creek this year, and build a paint facility next year. However, Hughes said Triam has not finalized expansion plans.
Triam mainly molds exterior trim in Stoney Creek but also makes interior and under-the-hood parts.
Stoney Creek would seem to be a good fit with Magna's recently spun-off Decoma International Inc. exterior part injection molding division, also in Concord, but Hughes said he has no idea how Magna would integrate Stoney Creek into its operations. Officials of Aurora, Ontario-based Magna were unavailable to comment on integration. Magna bought about 58 percent of Decoma after Decoma made its first public offering in February.
Hughes expects Magna to make a formal bid for Triam by about April 6 and said the offer would be outstanding for about 35 days. Triam has hired RBC Dominion Securities Inc. of Toronto to review other potential bids. Hughes would not comment on whether other companies have expressed interest in topping Magna's offer.
Media reports speculated that Triam's laser welding technology for steel body panels is what Magna finds most interesting in the company. Triam runs a laser welding plant in Concord and metal parts operations in Michigan and Ohio. Its total sales last year were C$104.3 million (US$73.5 million).