Private equity firm Atlas Holdings has united Rehau Automotive and SRG Global Inc. into RESRG Automotive, a manufacturer with sales that could top $1 billion in North America.
Troy, Mich.-based RESRG — pronounced "resurge" — will be a global supplier of coated exterior systems and components to automakers, officials said in a news release. Greenwich, Conn.-based Atlas had announced its acquisitions of SRG and Rehau Automotive in October.
Rehau Group will continue to hold a minority stake in RESRG. Jeff Stafeil will serve as RESRG's first CEO. He has 30 years of automotive supply experience, most recently as CFO of auto parts supplier Tenneco.
Atlas Operating Partner Fritz Henderson will serve RESRG as chairman of the board. Atlas Operating Partner Gurminder Bedi has also been named to the board. Both have extensive industry experience.
RESRG employs 10,000 at 22 global production sites. Officials said the business combines SRG Global's functional decorative systems for the automotive, mobility and commercial truck industries with Rehau Automotive's exterior, bumper and polymer functional systems.
SRG was formed in 2009 when Guardian Industries, a glass specialist, purchased Missouri-based Siegel-Robert Automotive, one of the biggest makers of chrome-plated plastics. It was No. 7 in the most recent Plastics News ranking of North American injection molder with an estimated $990 million in sales in the region.
SRG has a stronger presence in North America but also has operations in Germany, Spain, Poland, Thailand, China and Japan.
Until October, Rehau Automotive was part of Switzerland-based Rehau Group, which retains a minority stake in the new company. Its North American operations are in Leesburg, Va. It came in at No. 81 in the most recent PN ranking of injection molders with $110 million in sales in North America. Its 7,000 employees at 25 locations have a stronger presence in Europe, but it is spread across nine countries.
The combined company also offers blow molding, chrome plating painting.
"The automotive industry remains an area where we see continuing opportunity, especially during this current period of uncertainty and volatility," said Atlas Managing Partner Jacob Hudson. "We have a long history of investing in automotive suppliers and working with talented and experienced business leaders to position these companies for long-term growth, and that is our intention with Rehau Automotive and SRG Global through the creation of RESRG Automotive.
He added the formation of RESRG "will honor the proud histories of these two great companies and build upon their legacies as suppliers of choice to automakers globally."
RESRG CEO Stafeil said the combination "creates a leading global supplier with a highly complementary footprint, unique set of capabilities and trusted customer relationships."
Atlas owns 27 companies, employing more than 57,000 at more than 350 global sites. Most of those businesses are in manufacturing. They generate total annual sales of about $18 billion.