NOVI, Mich. (June 6) — Cooper-Standard Automotive Inc. plans to purchase selected sealing systems operations from Metzeler Automotive Profile Systems, including eight European manufacturing facilities and joint venture interests in China and India.
The two companies have signed a "memorandum of understanding" for the transaction, which is subject to the execution of a definitive purchase agreement and regulatory approvals, Cooper-Standard said June 6. The deal is expected to close in the third quarter.
The acquisition includes Metzeler Automotive operations in Germany, Italy, Poland and Belgium, plus the JV interests. The consolidated annual sales of the businesses were about $400 million in 2006, Cooper-Standard said.
The addition of the Metzeler Automotive businesses will complement Cooper-Standard´s current operations in terms of customer base and geographic footprint with limited overlap, the company said. Metzeler Automotive is a leader in Europe in the development and manufacture of complete automotive weathersealing systems, and the businesses to be acquired also produce rubber compounds and sheeting products for various industries.
Jim McElya, Cooper-Standard chairman and CEO, said the addition of the Metzeler businesses will significantly expand his company´s manufacturing footprint outside of North America and supports the strategy of diversifying its customer base. The deal will further establish Cooper-Standard as a major supplier in the global automotive supply market, he said.