Johnson Electric says it has completed the acquisition of Stackpole International, a supplier of engine and transmission pumps as well as powder metal components, primarily for automotive applications for C$800m (US$605m).
“The combination of Stackpole’s pumps and powder metal expertise with Johnson Electric’s electric motor capabilities and global resources provides us with a [n] opportunity to design and deliver integrated motorised pump solutions for our customers,” said Johnson Electric chairman and chief executive, Patrick Wang.
“These new products will strengthen the Group’s position as a supplier to key engine and transmission applications that contribute to improved fuel economy and reduced emissions.”
Johnson Electric acquired Stackpole from SI Investors, a limited partnership majority owned by Crestview Partners, in an all-cash transaction, which valued Stackpole at C$800m on an enterprise value basis.
“It allows for the continued advancement of our core product portfolio and the development of new technologies to meet the changing needs of our industry,” said Stackpole CEO, Peter Ballantyne.
“It also offers our employees additional benefits from becoming part of a larger manufacturing group that brings global breadth and financial strength to support our growth initiatives over the long term.”
The combined company has a global workforce of more than 37,000, with operations in more than 20 countries worldwide.
Stackpole, headquartered in Ontario, Canada, has a 109-year history as a supplier of components to the automotive industry and employs more than 2,500 individuals across a global operating footprint that includes nine manufacturing facilities located in North America, Europe and Asia.
Its customer base is comprised mainly of the world’s leading automotive original equipment manufacturers and their Tier 1 suppliers.