Auto parts maker seeking acquisitions
Canadian PlasticsCanadian Plastics
Decoma International Inc.'s current bid to buy French auto parts supplier Peguform may well be an indication of wha...
Decoma International Inc.’s current bid to buy French auto parts supplier Peguform may well be an indication of what’s ahead in 2003. In a conference call with analysts last week, Decoma president Al Power noted that the current environment “provides an opportunity for us to pursue select acquisitions.”
“Our market and financial positions are strong,” Power continued.
Acquisitions could be used to diversify Decoma’s product lines, which currently cover exterior components and systems, including fascias, body panels, lighting and sealing.
The Peguform bid is currently in the hands of the French courts. The company is in receivership, and there was another bid for the assets. A decision is expected mid-March.
One benefit of the Peguform acquisition would be inherited relationships with two European OEMs, Peugeot and Renault.
Power also highlighted some technologies he expects to grow in 2003: thermoplastic vulcanizates for body sealing systems, and composite materials for tailgates and running boards on SUVs.
Fiscal 2002 was a good year for Decoma despite challenges in the automotive industry. The company’s net income for the fourth quarter increased 17% to $23.1 million, compared to $19.8 million for the same period in 2001. Net income for the full year ended December 31, 2002 increased 35% to $93.0 million, compared to $68.7 million last year. Decoma is based in Concord, ON.