Toledo, Ohio — German auto supplier Grammer AG is more than doubling its presence in North America with the acquisition of Toledo Molding & Die Inc.
Once the $271 million purchase of Toledo-based TMD is finalized, Grammer will pick up another $300 million in sales in North America, 10 plants in the U.S. and another site in central Mexico and 1,600 employees.
Grammer currently has about $250 million in North America, with five U.S. plants, and two in Mexico. Globally, Amberg, Germany-based Grammer has 13,000 employees in 19 countries.
TMD will help it balance out its geographic footprint, Grammer officials said in a May 22 investor presentation. It now see 68 percent of its sales in the Europe, the Middle East and Africa (EMEA) region, 18 percent in the Americas and 16 percent in Asia Pacific. After the acquisition, the Americas will account for 28 percent of sales, EMEA 59 percent and the rest from Asia Pacific.
TMD, with injection molding, blow molding and mold making, also brings a strong customer and technology mix, Grammer said in a news release.
"The TMD Group is one of the leading specialists in the development and production of innovative thermoplastic components in the North American automotive market," Grammer noted. "With this transaction, Grammer Group is systematically implementing its strategy of acquiring technology companies with the objective of enhancing its own product range and process expertise."
About 71 percent of TMD's sales are directly to automakers and 29 percent to Tier 1 suppliers. Its customer list includes Fiat Chrysler, Ford, General Motors, Honda and Nissan. Grammer said the range of customers also supplements its North American operations, allowing it to "additionally diversify its customer base."
Toledo Molding makes door panels, pillars, glove boxes and center console parts as well as functional, non-visible parts such as ducts, front end components, fans, coolant systems and resonators.
TMD was No. 40 in Plastics News' 2017 ranking of North American injection molders with an estimated $230 million in sales; No. 27 in PN's 2017 ranking of blow molders with an estimated $75 million in sales; and No. 37 among North American mold makers with an estimated $15 million in sales.
Grammer will finance the purchase with "debt at attractive financing terms." It expects to close the deal in the third quarter of 2018.