Gentherm Inc. is acquiring the automotive business of German supplier Alfmeier Präzision SE for more than $187.5 million, bolstering its portfolio of comfort seating solutions.
Farmington Hills, Mich.-based Gentherm's deal with Treuchtlingen, Germany-based Alfmeier is expected to close during the third quarter, according to a news release.
Gentherm's core business is automotive thermal management technologies, which include climate-controlled seats and heated steering wheels, armrests and other interior components. It also supplies cable systems and electronic assemblies.
The company has more than 11,000 employees globally, including 284 at its administrative base in metro Detroit. It had revenue of $1.05 billion in 2021.
"Alfmeier's automotive business is a perfect complement to Gentherm's existing capabilities and will further drive our mission to improve comfort, health, wellness, and energy efficiency," Phil Eyler, Gentherm's president and CEO, said in the release as reported by Crain's Detroit Business. "This transaction aligns well with global consumer demand for expanded offerings in vehicle passenger comfort."
Gentherm saw first quarter net income fall 64 percent to $11.7 million and sales slide 7.2 percent to $268 million, according to its earnings report released last week. As many other suppliers have also indicated, Gentherm said inflation, supply chain issues and the Russia-Ukraine conflict are putting pressure on the company's top and bottom lines.
Alfmeier has 2,200 employees globally, including 250 at a production plant in Greenville, S.C., with more than 30 injection molding machines.Its automotive business generated more than $245 million last year.
Gentherm will finance the transaction through existing cash balances and its revolving credit facility, according to the company.
Detroit-based Honigman LLP and Stuttgart, Germany-based Gleiss Lutz Hootz Hirsch served as legal counsel to Gentherm.