M&A Activity

OEMs are increasingly demanding full coverage of product and service ranges. This is particularly affecting medium-sized companies in the supply chain who are currently facing tremendous challenges.

These include the need to:

  • Expand geographically and ‘follow the customer’;
  • Establish an integrated process chain (‘one stop shop’);
  • Reduce logistics costs; and
  • Address the growth requirements of OEMs by assuring certain quality standards, reinforcing their capital and financial base, and partnering with strategic or financial investors.

These trends are driving significant consolidation across the automotive market. In addition, Chinese players are seeking market entry opportunities into the European and North American automotive lightweight markets and have been particularly acquisitive in recent years. This is driving further consolidation and vertical integration of the global supply chain.

These trends are particularly striking in the fast-growing lightweight components sector, especially among processors of aluminium and aluminium-based components. As our table below shows, there has been a global scramble for knowledge, expertise and excellence in the sector.

Recent deals in the lightweight components sector:

Target Country Purchaser Comment
Faurecia SA's automotive exteriors division France Plastic Omnium SA Plastic Omnium acquired Faurecia's automotive exteriors division in order to strengthen its technological capabilities in the lightweight segment.
WEGU Leichtbausysteme GmbH Germany Anhui Zhongding Sealing Parts Co Ltd Anhui Zhongding Sealing Parts acquired WEGU Leichtbausysteme, a German manufacturer of lightweight components.
F.W. Brökelmann Aluminium Group GmbH Germany Knauf Interfer SE Knauf Interfer acquired F.W. Brökelmann Aluminium Group, a German manufacturer of aluminium products. Clearwater International advised F.W. Brökelmann Aluminium on its sale.
Seissenschmidt Group GmbH Germany Linamar Corp Linamar acquired Seissenschmidt, a German manufacturer of automotive forgings.
Meridian Lightweight Technologies Inc US Wanfeng Auto Holding Group Co Ltd / Shanxi United Magnesium Industry Co Ltd Wanfeng Auto Holding Group and Shanxi United Magnesium Industry acquired Meridian Lightweight Technologies, a US manufacturer of lightweight magnesium castings.
Malcolm Enamellers ACP Ltd UK MetoKote Corp MetoKote acquired Malcolm Enamellers ACP, a UK manufacturer of advanced automotive coatings.
Stadco Automotive Ltd UK Magna International Inc Magna acquired Stadco, a UK manufacturer of automotive pressings.
DPE-Automotive Ltd UK Arlington Industries Group Ltd Arlington Industries Group acquired DPE-Automotive, a manufacturer of automotive components.
UYT Ltd UK Shandong Yongtai Chemical Group Co Ltd Shandong Yongtai Chemical Group acquired UYT, a UK manufacturer of body-in-white components and sunroof assemblies.
TI Automotive Ltd UK Bain Capital US private equity firm Bain Capital acquired TI Automotive, a UK manufacturer of automotive fluid delivery and storage systems.
Delphi Automotive plc's thermal division UK Mahle GmbH Mahle acquired Delphi Automotive's thermal unit.
Kotobuki-Reliable Die Casting Inc US American Metal Technologies LLC American Metal Technologies acquired Kotobuki-Reliable Die Casting, a US manufacturer of aluminium die castings and precision machined components.
Allcast LLC US Aavid Thermalloy LLC Aavid Thermalloy acquired Allcast, a US manufacturer of highly-engineered, precision aluminium high-pressure die castings and machined components.
Jason Inc Us Quinpario Acquisition Corp Quinpario Acquisition acquired Jason, a US manufacturer of automotive acoustic, aluminium and seating products components.
US Manufacturing Co US Wynnchurch Capital US private equity firm Wynnchurch Capital acquired US Manufacturing (USM), a US manufacturer of extruded aluminium products.
Finnveden Metal Structures AB Sweden Shiloh Industries Inc Shiloh Industries acquired Finnveden Metal Structures, a Swedish manufacturer of aluminium, magnesium and steel castings.
Contech Castings LLC US Shiloh Industries Inc Shiloh Industries acquired Contech Castings, a US manufacturer of lightweight die cast components.
Unified Industries Inc US Columbus McKinnon Corp Columbus McKinnon acquired Unified Industries, a US manufacturer of aluminium overhead rail systems.
Farsund Aluminium Casting AS Norway Benteler International AG Benteler acquired Farsund Aluminium Casting, a Norwegian manufacturer of lightweight aluminium components.

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Our latest automotive newsletter looks at the top M&A deals and selected recent bond issuances in the automotive sector. Read the latest newsletter here.

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