Grammer AG, the German manufacturer of automotive seats and interior components, is buying Reum Group for an undisclosed amount. Reum specializes in automotive interior components with decorative surfaces which it makes using injection molded plastics and metal combinations. Reum has around 950 employees and generated sales of around 130 million euros ($143.5 million) in 2014 from its production facilities in Germany and Poland.
Grammer is buying 100 percent of Reum Group's share capital from H.T.P. Investments B.V. and Palatium Beteiligungsgesellschaft UG as well as H.T.P. Automotive GmbH, which is part of the HTI Group in Austria. The acquisition, which Grammer is financing using existing credit facilities, is subject to approval by antitrust authorities.
Calling Reum a “perfect strategic fit,” Grammer said in a news release: “With this acquisition, Grammer is extending its own technological capabilities in plastic injection molding processes, surface finishing, metalworking and system joining technology. These process and production technologies will allow the group to additionally develop its product range — particularly in automotive interiors — swiftly and in line with future requirements.”
Reum's product range includes panels, air vents and grilles for center consoles and instrument panels, interior components and metal or plastic loudspeaker grilles. It supplies customers working with premium car makers in Germany.
“Grammer will be able to enhance the scope of delivery and the existing product portfolio of its center console deliveries particularly thanks to the strong capabilities which Reum possesses in surface technology and tool making,” said Grammer.
Hartmut Müller, CEO of Grammer, said: "We have found in the Reum Group an ideal partner for Grammer's continued successful development. Technological trends and the increasingly higher quality of automotive interior promise strong future potential for components suppliers.
“With the acquisition of the Reum Group, we will be gaining valuable expertise and crucial technological capabilities in core processes which will help us to strengthen our competitive position. At the same time, the technologically sophisticated products will also help the Grammer Group to achieve its ambitious growth and profitability targets."
Grammer has 11,000 employees and sales of 1.37 billion euros ($1.5 billion) in 2014.