ABC Technologies, a portfolio company of Apollo and a manufacturer of automotive plastic components, has agreed to acquire certain automotive North American units from Plastikon Industries for $130 million.
Post-closing, the acquired assets will operate as Plastikon Automotive, a Tier One and Tier Two supplier of automotive interiors – headliners, door assemblies and center consoles – and electric vehicle (EV) battery housings. The company has 900 employees and operates three facilities in the United States in California, Texas, and Kentucky. Its manufacturing capabilities include injection molding, compression molding, plastics welding, wrapping and fusing, adhesive bonding, painting and robotic assembly. In FY2022, Plastikon Automotive’s revenue was approximately US$280 million.
ABC Technologies (TSX: ABCT) is a manufacturer and supplier of thermoplastic, custom compounds, and engineered lightweight plastics used in the North American light vehicle industry by more than 25 original equipment manufacturers. ABC’s products are present on 75% of all light vehicles and used on each of the top 15 light vehicle models in North America.
ABC is organized into six product groups – HVAC systems, interior systems, exterior systems, fluid management, air induction systems, and flexible systems – and its services include manufacturing; design; engineering; material compounding; and machine and tool building. Toronto-headquartered ABC was founded in 1974 and has more than 10,000 employees at locations in Canada, United States, Mexico, China, Brazil, Spain, Germany, Poland, and Japan.
“Welcoming Plastikon Automotive into ABC Technologies will represent a significant step forward for our company,” said Terry Campbell, the president and CEO of ABC Technologies. “It amplifies our position as an industry leader in lightweighting and plastic injection molding, gives ABC a stronger foothold in the EV space, and most importantly, provides a new set of employees with opportunities to play larger roles in molding the future of mobility.”
Apollo acquired 51% of publicly traded ABC from Cerberus Capital Management for C$277 million in June 2021.
New York City-headquartered Apollo (NYSE: APO) has more than $598 billion of assets under management and more than $83 billion dedicated to private equity. The firm has acquired more than 350 companies since its founding in 1990.
Scotia Capital and TD Securities are the financial advisors to ABC, and Stifel is the financial advisor to Plastikon.
This transaction is expected to close by the end of the third quarter.
© 2023 Private Equity Professional | September 1, 2023
