Martinrea finalizes Depco acquistion
Tier One automotive parts manufacturer, Martinrea International Inc., has finalized its purchase of another Tier On...
Tier One automotive parts manufacturer, Martinrea International Inc., has finalized its purchase of another Tier One auto supplier, Brampton, Ont.-based Depco International Inc.
Toronto-based Martinrea will pay $6.5 million for Depco’s manufacturing equipment, working capital of $12 million and goodwill of $1.1 million. The asset purchase will be funded through the payment of about $20 million in cash, Martinrea said.
Now the acquisition has been finalized Depco, which lists General Motors Corp. and DaimlerChrysler as its primary clients, will be known as Rollstar Metal Forming.
Depco manufactures roll formed metal products that incorporate injection-molded plastic to produce exterior automotive parts, interior trim and assemblies. Last year it posted annual sales of about $50 million.
“Depco’s operations will increase our roll forming and extrusion skill sets, which can be complementary to some of our existing operations in the U.S.,” Fred Jaekel, Martinrea’s CEO, said.
Martinrea manufactures metal parts, assemblies and modules, fluid management systems, also primarily for the automotive sector.