How much will Collins & Aikman pay for Textron Automotive Co.'s Trim Division?
About $1 billion in cash and debt assumption, 18 million shares of Collins & Aikman stock at $5 per share and $245 million worth of preferred stock. The deal will make Textron Inc. a major stockholder in C&A. The company will not have a seat on the board of directors but will have access to all board meetings and information to keep it fully informed of its investment.
What does Collins & Aikman get for its more than $1.3 billion buy?
It will add the Textron division's 38 operations worldwide to its already existing holdings, making it a major player in automotive plastics with 800 injection molding presses in North America alone and nearly 1,000 presses worldwide. It also buys a wealth of technological talent, capable of producing seamless air-bag covers for instrument panels, ``soft touch'' cover skin programs in both thermoplastic polyolefin and urethane and the Intellimold closed-loop injection molding processing system.
Why does Collins & Aikman want automotive plastics processing?
The corporation is building its future as a ``mega Tier 2'' supplier, specializing in making a wide variety of interior automotive components. But it wants to marry that production capability with acoustics performance. To control sound quality inside a vehicle, it must have control over the materials that make up the interior atmosphere. Its acquisition strategy aims at allowing it to make everything from the carpet on the floor to the seat fabric to the instrument panel's skin.
What will happen to Textron Automotive Trim's key employees?
The vast majority will transfer to Collins & Aikman. The new owner aims to continue their work in developing and producing systems, but now for C&A.
What happens to the remaining parts of Textron Automotive?
Once the sale is completed, Textron Inc. will end Textron Automotive Co. as a working entity. The two remaining parts of TAC, blow molder Kautex and camshaft producer CWC, will move under the leadership umbrella of Textron Fastening Systems of Troy, Mich.
Sources: Collins & Aikman Corp., Textron Inc., Textron Automotive Co.