USA: Lear buys German electrical parts maker
Lear Corporation has signed a definitive purchase agreement to acquire the parent of GHW Grote & Hartmann GmbH, a manufacturer of electrical components based in Wuppertal, Germany.
Grote & Hartmann manufactures terminals and connectors, junction boxes and machinery to produce wire harnesses, primarily for the automotive industry. The acquisition will support Lear's strategy to grow its electronics and electrical distribution systems business and further diversify its sales. Grote & Hartmann's main customers are Volkswagen, BMW, Ford, Opel, DaimlerChrysler, Renault, MAN and PSA Group.
Grote & Hartmann had 2003 sales of approximately €225 million, or about $US275 million, with about 75% in Europe, 15% in North America and 10% in the rest of the world. The company has production facilities in Germany, Czech Republic, Mexico, France and South Africa, and employs approximately 1,900 people worldwide.
The total value of the transaction is approximately €180 million or about $220 million, including the assumption of debt and other costs related to the transaction. The acquisition is not expected to impact 2004 earnings guidance and is anticipated to be slightly accretive to Lear's 2005 earnings per share. The transaction is subject to certain legal and regulatory approvals and other conditions, and is expected to close by the end of the second quarter.