HDT Automotive has agreed to acquire Veritas AG.
HDT designs, engineers and manufactures thermal management systems worldwide and the acquisition creates a global leader in fluid handling systems with annual revenue approaching $1bn.
Veritas is an automotive supplier based in Gelnhausen, Germany, with expertise in elastomers, plastics and metal for fluid, thermal and sealing management systems.
The transaction is expected to close at the end of October 2021, subject to usual regulatory approvals.
Terms of the deal will not be disclosed.
HDT said the acquisition “immediately transforms” the supplier “by doubling its size “.
“The deal also advances HDT’s innovative material science and connection expertise across rubber, plastic and metal fluid carrying devices for diverse automotive uses.”
The transaction includes all Veritas operating units globally. The combined entity will also expand HDT’s engineering capabilities to provide thermodynamic management systems for the growing hybrid and electric vehicle market.
Veritas employs around 4,400 people worldwide at 12 locations in Europe, China and the USMCA region.
Customers include Volkswagen, BMW, Daimler, Ford and General Motors, as well as many suppliers.
HDT Automotive is the result of the merger between Huron and Dynamic Technologies. In 2017, Ardian, a world-leading private investment house, acquired Dynamic Technologies and merged it with Huron, an existing portfolio company controlled by the Ardian North America direct buyouts team.
With this latest acquisition, HDT will have 22 global locations including manufacturing facilities and engineering centres across North America, Europe and Asia.
Enhanced geographic scale creates opportunities across the combined companies’ customer base, as well as access to low-cost production countries, including Turkey and Bosnia, and additional capabilities and manufacturing footprint in Mexico, Hungary and China.