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ElringKlinger Group acquires US transmission component specialist M&W Manufacturing

Saturday, Feb 14, 2015

ElringKlinger AG has acquired all interests in the US company M&W Manufacturing Co. from the former owner family of the business. The agreement was closed on the evening prior to this announcement. M&W is to be included in the scope of consolidation of the ElringKlinger Group retrospectively as of February 1, 2015. The entity’s sales and earnings thus will contribute to ElringKlinger Group sales and earnings for fiscal 2015 for a period spanning 11 months.

The acquisition of M&W is seen as an important milestone in the expansion of ElringKlinger's Specialty Gaskets division, which generated sales of approx. EUR 200 million in 2014. The division primarily develops and produces turbocharger gaskets, high temperature gaskets and components for exhaust gas recirculation (EGR) and exhaust systems as well as control plates for automatic and dual-clutch transmissions.

The latest acquisition will allow the division to underpin its regional presence in North America and its production activities in the US market. Together with US market leader M&W, ElringKlinger has advanced to become the premier supplier of transmission spacer plates. In addition to supplying the North American market, M&W has started to increasingly serve the Chinese market from its US production site.

ElringKlinger will thus be pursuing opportunities in an additional field of structural growth. The market has seen significant growth in the proportion of high-performance automatic and dual-clutch transmissions, prompting more expansive demand in the coming years for key components such as control plates for transmission systems. As regards production and process technology, M&W's manufacturing activities in the field of transmission spacer plates complement ElringKlinger's screen printing and metal bead based technology. These technologies can be rolled out rapidly at production facilities operated by the ElringKlinger Group around the globe.

M&W employs around 100 people at its two company sites at Warren and Roseville, Michigan. The target for fiscal 2015 is to generate sales revenue totalling between EUR 33 and 34 million, with a projected operating margin (adjusted EBIT before purchase price allocation) in high single-digit figures. The purchase price is approx. 0.8-times the amount of sales revenues budgeted for 2015 and includes the assumption of financial liabilities totalling EUR 4.5 million. The parties to the contract have agreed not to disclose further details relating to the transaction. ElringKlinger will implement further improvements with regard to costs and earnings through further automation and mutual support in the field of development as well as production methods.

 

Source:http://www.elringklinger.de/

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