ABC Technologies to acquire automotive business unit of Plastikon Industries
Toronto, ONT – ABC Technologies Holdings Inc. announced it has entered into an agreement to acquire an automotive business in North America to be renamed Plastikon Automotive. The business is currently part of Plastikon Industries. Plastikon Automotive is a Tier One and Tier Two automotive interiors, assemblies and electric vehicle (EV) battery housing supplier.
Plastikon Automotive was founded over 40 years ago and operates three facilities in the United States; Hayward, CA; Austin, TX; and Leitchfield, KY. With approximately 900 employees, Plastikon Automotive’s full-service portfolio ranges from the production of battery module housings, injection molding headliners, door assemblies, center console assemblies and cluster meters. Plastikon Automotive’s technical expertise covers injection molding, compression molding, plastics welding, wrapping and fusing, adhesive bonding, painting and robotic assembly. Plastikon Automotive’s fiscal 2022 revenue was approximately US$280 million.
“Welcoming Plastikon Automotive into ABC Technologies will represent a significant step forward for our company,” said Terry Campbell, President and CEO, 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.”
The purchase price is US$130 million and the transaction is expected to close in the third calendar quarter of 2023 subject to the satisfaction of customary closing conditions. The acquisition is being financed through a drawdown under the Company’s credit facility. Scotia Capital and TD Securities acted as financial advisors to ABC Technologies. Stifel acted as financial advisor to Plastikon. Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as legal counsel to ABC Technologies. Morrison & Foerster LLP served as legal counsel to Plastikon.