Cadence Innovation LLC announced yesterday it has signed an Asset Purchase Agreement (APA) to acquire substantial assets and operations of the Collins & Aikman Plastics. Cadence has fasilities in the US, Hungary end Chech Republic.
Business with the understanding that Cadence Innovation LLC will take over production of a substantial portion of the programs currently sourced to Collins & Aikman Plastics (C&A). The sale is expected to close by the end of the Q2 of 2007 and will be financed through a mix of external debt financing and an investment by existing shareholders. The sale is subject to several contingencies, including satisfactory due diligence, agreements with customers and unions, shareholder approval, and approval of the US Bankruptcy Court.
The APA addresses operations in nine C&A plastic manufacturing plants throughout the USA, Ontario and Mexico, employing approximately 3,500 people producing product for most North American automakers. The Cadence industrial footprint will, in the event of a successful purchase, be broader, more balanced and will enable Cadence to increase supply to existing customers. It will also provide capacity in key growth areas to supply new customers.
The C&A product portfolio and manufacturing capabilities add breadth to the Cadence offerings by adding to existing product lines and by providing a number of incremental products including air registers, applique’s, and specialized paint/coatings. The APA also includes assets and technologies that enable vertical integration which add depth to the Cadence value stream. „This acquisition, in combination with the organic growth we have realized since we were established as a new company will, if successful, put us ahead of our growth plan and on the way to realizing our goal of leading the industry,” said Jerry Mosingo, President and CEO, Cadence Innovation.
Cadence Innovation is an automotive supplier offering design, engineering, manufacturing, and assembly/sequencing solutions for interior and exterior components, systems and modules in five areas - instrument panels/interior trim/cockpits, painted exteriors (including modules), doors/door modules and cargo management systems. The company has over 4,200 employees at 17 facilities in the United States, Hungary and the Czech Republic and supplies its products to automotive manufacturers around the world. (cadenceinnovation.com)