Nanogate AG, a Göttelborn, Germany-based company that specializes in making plastic products with high-tech surfaces, like auto glazing, has purchased Jay Plastics., a U.S. company that makes highly decorated plastic products, mostly for the auto and appliance industry.
Nanogate expects the acquired company to help it achieve 2017 sales of 150 million euros ($161 million).
But Nanogate touted the promise of additional growth in the future from the combination.
“With the successful company, Nanogate is establishing itself as a leading global specialist for design-oriented high-tech surfaces and components of very high optical quality,” the company said in a Dec. 5 news release.
“The planned transfer of technology further boosts Nanogate's sales potential in the U.S., especially in the area of design surfaces. The transaction also improves Nanogate's market access to Asian manufacturers. Nanogate addresses a market with an accessible volume in billions.”
The seller is Jay Industries Inc., a family-owned company founded in 1917 that also makes metal products. Jay Plastics started up in 1968 and has 400 employees in Mansfield, Ohio, plus some in Gadsden, Ala.
Its customers include U.S., Japanese and South Korean auto companies and suppliers.
Nanogate said it expects synergies and new projects as a result of the acquisition.
“Once the transaction has been completed, the Nanogate Group expects an immediate jump in sales to more than 150 million euros as well as direct access to an international market worth billions,” the company said in a news release.
Nanogate had 2015 sales of 90.8 million euros and 600 employees.
The company is acquiring about 80 percent of Jay Plastics shares for about $55 million — the release said the price is “in the mid double-digit million range.” Financing has been secured, and the deal should be finalized in early 2017, according to Nanogate.
Nanogate plans to create new jobs at the existing Manfield site through technology transfer. Both companies are already in talks with customers about potential new products.
Nanogate CEO Ralf Zastrau described Jay Plastics' corporate culture as being “similar to that of a German small to medium-sized enterprise. We therefore remain committed to the existing site in Mansfield and to the employees there as well as the management.”
Rick Taylor, president and CEO of Jay Plastics, called Nanogate “the ideal partner for Jay Plastics' further development.”
He added: “Nanogate has excellent relationships with top German automotive manufacturers. Together, we are a strong pair for innovative surfaces and plastic components on both sides of the Atlantic.”
