Auburn Hills, Mich.-based Unique Fabricating Inc. on Tuesday acquired the assets of the Concord, Mich.-based Great Lakes Foam Technologies Inc. for $12 million.
The purchase of the supplier of reaction injection molded polyurethane components was funded using Unique's $19.5 million revolving line of credit.
The acquisition is expected to add $12 million of annual revenue to Unique's sales, the company said in a release. The auto supplier reported net profit of $1.7 million on sales of $35.7 million in the second quarter of 2015.
Great Lakes generated sales of $10 million in 2014 and net profit of $1.3 million.
“This combination further accelerates our efforts to increase sales to existing customers while also opening doors to new customers and new end markets,” Unique CEO John Weinhardt said in a news release. “The addition of molded polyurethane components is a natural extension to our product line, and we have identified a number of cross-selling opportunities within our combined customer base.”
Unique went public July 1 and was trading at $11.88 in midday trading Tuesday.
The IPO marked a resurgence for the company. Unique battled insolvency during the automotive collapse in 2008 and 2009, causing its private equity lender, American Capital Ltd., to take control of the fabricator in a debt-for-equity swap.
Under a new leadership team, Unique Fabricating averaged 10 percent to 12 percent year-over-year growth. But opportunities arose for nonorganic growth, which called for a new financial backer.
New York City-based Taglich Private Equity LLC teamed with Unique management to structure a $41.5 million acquisition in March 2013 — and an exit for American Capital.
Nine months later, Unique closed on a $16 million deal to acquire Louisville, Ky.-based PrescoTech Industries Inc. That allowed the automotive supplier to diversify into home and commercial heating, ventilation and air conditioning.
Unique's customer base continues to be dominated by automotive, which accounts for 80 percent of its revenue, according to the IPO filing. General Motors Co. remains its largest customer.