France-based Demgy Group has acquired German thermoplastic and composite supplier E.I.S. Aircraft GmbH, poising it to lead aerospace plastics processing in Europe.
Before the acquisition, Demgy Group's largest markets were automotive and medical, Pierre-Jean Leduc, president and CEO of Demgy Group, told Plastics News in an interview.
E.I.S. Aircraft, rebranded as Demgy EIS since the deal took effect Sept. 28, expands the group's aerospace capacity as a Tier 1 supplier for Airbus and Boeing.
Demgy EIS specializes in the civil aerospace market, but also serves the defense market, he added.
"We had this opportunity to acquire a German competitor. … Aerospace was [always] our favorite business," Leduc said. "More than ever, I think with the global [economic] situation and … instability that we are living in at the moment, it's important that we reinforce the connection between … Europe … and to be stronger in the U.S. … to grow the business [there.]"
The addition includes facilities in Lemgo and Euskirchen, Germany, and 23 injection molding machines. He said the deal complements Demgy's existing manufacturing operations.
"This acquisition really goes well with what we do in France and … in Chicago."
Demgy Group, then known as Dedienne Multiplasturgy Group, bought MET Plastics Inc., a custom mold builder and injection molder in Elk Grove Village, Ill., near Chicago, in 2016.
The E.I.S. Aircraft deal also adds 130 employees, giving Demgy Group a total workforce of about 800 people.
"Our aim is to make Demgy EIS an even stronger company, and to offer our customers an even more comprehensive range of products and services," Marcus Bernards, director of Demgy EIS and former director of aviation products at E.I.S. Aircraft, said in an Oct. 10 news release.
"Everywhere we are, the management is local," Leduc said. "We have a lot of common customers, and the idea is to offer more on the two continents to our international customers. … Being on both sides of the Atlantic offers a lot of possibilities."
Demgy EIS' "one-stop shop" strategy will set it apart from its smaller competitors, he said.
The company's Euskirchen site develops, manufactures and assembles composite components for baggage compartments, class dividers, emergency equipment and seats for flight crews.
At its Lemgo site, the company designs and manufactures injection molded products from thermoplastic components for aeronautics including equipment for aircraft cabins, armrests, shelves and air ducts. It also produces molds and tooling and assembles manufactured products.
Demgy Group's sales are expected to exceed $105 million by the end of 2023, the release said.
Leduc declined to comment on the cost of the investment.
"Demgy and E.I.S. Aircraft are two of Europe's historic players in the production of plastic and composite components for the aerospace industry," Leduc said in the news release. "Our two entities are perfectly aligned in terms of their values and the strategy of lightening aircraft to promote the decarbonization of the aeronautical sector."
"This stronger position will enable us to deploy innovative solutions on a larger scale to lighten structures and offer components created from bioplastics or flax composites," the release said.
Financial company Restart AG, owned by Markus Hüter, took over E.I.S. Aircraft in June 2021 after it suffered the full force of the aeronautics crisis in 2020 due to the pandemic, the release said.
Restart's restructuring plan "and the strong upturn in the aeronautics business have enabled the E.I.S. Aircraft group to return to healthy profitability."
Saint-Aubin-sur-Gaillon, France-based Demgy Group has five sites in France, two in Romania and one in the United States, plus two research and development centers.
Dedienne Multiplasturgy Group changed its name to Demgy Group in 2021 as part of a rebranding campaign. Previously, each division was operating under a separate unique name — for example, as Met2Plastic in the U.S.
The company transitioned to a common group name to streamline branding efforts and reduce confusion with customers.