US: IAC acquires Stankiewicz US flooring operations
International Automotive Components Group (IAC) has announced that it has acquired flooring & acoustics supplier Stankiewicz International Corporation, a US subsidiary of Gimotive GmbH.
This deal follows IAC's 2009 acquisition of Stankiewicz's European Flooring & Acoustics operations and is further evidence of billionaire investor Wilbur Ross' - IAC's chairman - attempt to play a very active part in supplier sector restructuring.
The acquisition includes a manufacturing campus comprised of three buildings encompassing 190,000 sq. ft. of manufacturing space. Located in Spartanburg, South Carolina, the operation employs approximately 150 people and manufactures flooring systems, dash insulators and trunk systems.
The Flooring & Acoustics operation generates approximately US$30m in annual sales and is expected to increase to $50 million in 2011, based on booked business.
"This strategic acquisition represents another step in IAC's commitment to continue reinforcing its global leadership position in the vehicle interiors segment," said James Kamsickas, IAC's president and CEO of North America and Asia.
"The greatest strength we gain from this deal is the extensive skill and expertise of the employees - from both Europe and the US - who now join the IAC family of vehicle interiors experts," he said.
Wilbur Ross, Chairman of IAC added, "The transaction further strengthens IAC's manufacturing footprint in North America, provides added value to existing and new customers in the segment and continues the consolidation of the industry."
In July of 2009, IAC Europe acquired Stankiewicz GmbH, which was a market leader in the European premium automotive segment for insulations, dampening products, sound absorbers, floor coverings and other coverings.
Stankiewicz GmbH filed for insolvency on December 29, 2008, due to the severe downturn in the automotive market. IAC Europe acquired nine European facilities in Germany, Belgium, Czech Republic and Poland, 1,200 employees and a business that generated over Euro 150 million in annual (2008) sales as part of the Stankiewicz GmbH transaction.
Wilbur Ross told an industry conference in Frankfurt in September of last year that he believes there are big opportunities ahead in supplier sector restructuring and that he sees long-term profitability as a result of further consolidation and the removal of overcapacity.
Ross also maintained that IAC - with operations in 17 different countries - would continue to act as a consolidator through a period of international consolidation in the automotive interiors sector.