Austrian automotive components supplier Polytec Holding AG has set its sights on taking over a European rival, Grammer AG of Amberg, Germany.
Hoersching, Austria-based Polytec, admitted its ``strategic interest'' in the German company soon after it bought a 10 percent stake in Grammer. Its subsequent acquisition would be a ``perfect fit'' with Polytec's car interiors business and boost its commercial vehicle component portfolio, according to a news release from the Austrian firm.
Polytec plans to consult with Grammer's chief investors and managers before it decides whether to launch a full-blown takeover bid, Polytec announced on Jan. 15.
Two days later, Grammer, which is quoted on Germany's Frankfurt and Munich stock exchanges, confirmed that Polytec had purchased a stake in the firm, and said that talks will be scheduled.
Grammer, a manufacturer of commercial and off-road vehicle seating and automotive interior parts, employs more than 9,000 through 21 offshoot companies in 17 countries. In 2006, the firm launched two plants in Tianjin and Changchun, China, to produce interior parts including arm and headrests, and seats for trucks, buses and trains. A third facility was planned later for Shanghai.
In the United States, Grammer has an automotive interior parts operation in Piedmont, S.C., and a seating business in Novi, Mich. It also has plants across Europe and in addition is in Latin America with businesses in Mexico, Brazil and Argentina.
In the first nine months of 2007, Grammer reported operating profit of nearly 27 million euros ($40 million ) on sales of 735 million euros ($1.1 billion).
Polytec, founded in 1986, has developed from an industry parts supplier to provide its full automotive systems.
It produces interior, exterior and under-hood components as well as car and commercial vehicle accessories.
The company reported an operating profit of just over 26 million euros ($38 million) on sales of 467 million euros ($686 million) in the first nine months of last year. In 2008, Polytec expects to record annual sales of around 800 million euros ($1.17 billion). The company employs around 6,000 across its four divisions which have 28 plants across Europe and in Turkey and South Africa.
In North America, it runs Polytec Foha Inc in Warren, Mich., and Polytec Foha Corp. in Markham, Ontario.