Grammer AG, a global supplier of interior components for passenger cars and commercial vehicles seating systems, has signed a contract to acquire Toledo Molding & Die Inc. (TMD), based in Toledo, Ohio.
The TMD Group is one of the leading specialists in the development and production of innovative thermoplastic components in the North American automotive market. 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. TMD develops and produces mainly interior components for visible and non-visible applications for the automotive industry. In a period spanning more than 60 years, TMD has transformed into a leading development and process specialist for thermoplastic solutions with its own tooling engineering for the North American automotive market.
Grammer is acquiring 100 percent of the share capital of Toledo Molding & Die Inc. Grammer AG will be funding the acquisition fully with debt at attractive financing terms. The acquisition is still subject to antitrust clearance and other standard closing conditions. The transaction is expected to close in the third quarter 2018.
According to preliminary figures, TMD Group generated revenues of more than $300 million in 2017 and has approximately 1,600 employees at 11 facilities in the United States and Mexico.
With the acquisition of TMD, Grammer can further expand its position in North America and increase the revenue contribution generated in the world’s second largest automotive market. In addition to this top-line growth, Grammer can particularly benefit from TMD’s broad-based production network and increase its local manufacturing capacities in the United States. TMD has well-established distribution structures and development partnerships with the three major U.S. passenger car OEMs, as well as Asian OEMs based in the U.S. This will allow Grammer to additionally diversify its customer base, the company says.
The TMD Group has 100 engineers based at its development centers in Ohio and Michigan, where it works on complex thermoplastic products, new materials and innovative production processes. The importance of such innovative materials has grown sharply in the automotive industry in particular over the past few years. Already today, more than 15 percent of the input materials for a passenger vehicle are made from plastics and plastic composites. The proportion of thermoplastic applications and components will continue to grow substantially in future generations of passenger vehicles and commercial vehicles. The use of functional and light weight plastics results in weight savings, provides greater design flexibility and allows more functions to be integrated particularly in the interior, thus lowering the complexity of assembling vehicles.
Grammer’s global presence and expertise as one of the leading suppliers of components for passenger and commercial vehicles offer TMD additional growth potential outside of NAFTA. Moving forward, it will be possible to make TMD’s product range available to a substantially broader customer base in the passenger and commercial vehicle segments.
In addition, the two companies’ processes and organizational structures will be optimized using their combined longstanding industrial experience in order to capture further synergistic effects.
Grammer says it has found an ideal partner for the continued successful execution of its growth and innovation strategy, aiming to form a leading global specialist in process and production technology for thermoplastic components.