Canada's Martinrea International Inc. is continuing its growth spurt as an auto supplier, buying a company with both plastics and metal forming to boost its own capabilities.
With the purchase of Depco International Inc. for nearly C$20 million (US$17.6 million), Martinrea will be able to expand its product line and technological capability, Chief Executive Officer Fred Jaekel said in a news release.
Toronto-based Martinrea will continue operating Depco's manufacturing operations in Brampton, Ontario, under the name Rollstar Metal Forming. The company has about C$50 million (US$44.1 million) in annual sales. It was owned by financial group Aberdeen Gould.
Depco has both injection molding and roll-formed metal products for interior and exterior auto parts. Martinrea is known more for its fuel-system components, but also makes parts for heating and air conditioning, safety and exterior products.
Depco is just one recent acquisition for Martinrea. In October it signed an agreement to buy ThyssenKrupp Budd Co.'s North American auto body and chassis unit. It purchased the former Pilot Industries Inc. in 2003, adding fuel-system specialties to its holdings. In 2005, Martinrea bought metal former Corydon Manufacturing LLC.
Martinrea now has about C$670 million (US$591.7) in annual sales, with more than US$2 billion in potential business through the Budd acquisition.