Norway's Kongsberg Automotive Holding ASA has completed its $560 million purchase of Teleflex Inc.'s global motion systems division, including North American plants making plastic components for the auto industry.
The move will boost Kongsberg's reach into North America, bringing 15 new plants in the region from Limerick, Pa.-based Teleflex.
The Teleflex operations include a variety of plastics processing sites including composite hose manufacturing operations in Connecticut and Ohio, and the Norland Plastics Co. injection molding plant in Haysville, Kan. The acquisition also brings plants in South America, Europe and Asia to Kongsberg, based in Kongsberg, Norway.
``This business has been on our acquisition target list since 1998,'' said Kongsberg Chief Executive Officer Olav Volldal in a news release.
The combined company will bring Kongsberg's annual sales to $1.5 billion annually, up from about $500 million.
The Teleflex facilities have 8,000 employees globally with $850 million in sales, and also will broaden Kongsberg's global exposure. Prior to the acquisition, the company did 75 percent of its business in Europe and 17 percent in North America. With the new plants, North America will account for 38 percent of its business, with 56 percent in Europe and 6 percent in Asia.
Teleflex and Kongsberg produce a variety of functional parts including gearshift levers, tubing, hoses, cables and seating components.