A subsidiary of Koch Industries Inc. is buying Guardian Industries Corp., the parent company of injection molder SRG Global Inc.
SRG ranked No. 4 in Plastics News' most recent ranking of North American injection molders with more than $1 billion in annual sales, eight plants and 6,000 employees in North America alone, with additional operations in Europe and Asia. It is based in Troy, Mich.
Parent company Guardian, based in Auburn Hills, Mich., announced Nov. 21 that its shareholders approved the sale to KGIC Merger Corp., a wholly owned subsidiary of Wichita, Kan.-based Koch.
The deal is a cash transaction for the 55.5 percent of outstanding shares of Guardian Industries' common stock not already owned by affiliates of Koch.
Terms of the deal were not disclosed.
“We have benefited a great deal from Koch's robust guidance and infrastructure since its initial investment in 2012," Ron Vaupel, president and CEO of Guardian, said in a news release. "Our companies align in many areas, including culture, global footprint and supply chain. We are excited to continue working together to create value for our customers and society."
Charles Koch, chairman and CEO of Koch, said "Guardian is a world-class organization and a leader in providing innovative products. This acquisition fits well with our culture and core capabilities. We look forward to Guardian fully joining the Koch Industries family."
Guardian Industries is a privately held, diversified global company that employs about 17,000 people and operates facilities throughout North America, Europe, South America, Africa, the Middle East and Asia.
Guardian Industries was founded in 1932 as Guardian Glass Co. a family-owned supplier of windshields for the auto industry. In 1957, William Davidson, a member of the family and a lawyer with expertise in turning around struggling companies, was named president of the company. He guided it through bankruptcy and in 1968 changed its name to Guardian Industries.
SRG was formed in 2009 after Guardian purchased Seigel-Robert Automotive, a maker of electroplasted auto plastic trim and merged it with its own exterior trim operations.
SRG has since expanded in the U.S., Europe, Mexico and China and established itself as the leading supplier of chrome plated plastic trim.
Guardians' other companies manufacture glass products for a variety of uses and distributes specialty building products.
Koch Industries is one of the largest private, highly diversified companies in America, with estimated annual sales as high as $100 billion, according to Forbes.
Since 2003, Koch companies have invested about $80 billion in acquisitions and other capital expenditures. With a presence in more than 60 countries, Koch companies employ more than 100,000 worldwide, with about 60,000 in the U.S.
The transaction is subject to antitrust approval and expected to close in the first quarter of 2017.
BDT & Co. LLC and Evercore Group LLC acted as financial advisers to Guardian Industries, and Munger, Tolles & Olson LLP acted as the company's legal counsel. Goldman, Sachs & Co. and Citigroup acted as Koch's financial advisers, and Jones Day acted as its legal counsel.