Canadian Plastics

LDM Technologies Purchase Fuels Plastech’s Hopes

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Following the heavily financed acquisition of LDM Technologies, Plastech Engineered Products chairman and CEO Julie Brown is reportedly projecting US$1.2 billion in sales during 2004 -- up 20% over 2003.

Following the heavily financed acquisition of LDM Technologies, Plastech Engineered Products chairman and CEO Julie Brown is reportedly projecting US$1.2 billion in sales during 2004 — up 20% over 2003.

Combined sales for the two automotive suppliers totaled about US$975 million last year, with the deal for LDM nearly doubling Plastech’s sales. (The LDM business includes a plant in Leamington, ON.)

Plastech (Dearborn, MI) borrowed up to US$515 million, including US$100 million from a little-used line of credit, to purchase LDM, pay off that company’s debts, and re-finance its own debts, the Detroit Free Press reports. Standard and Poor’s estimates the long-term debt to be about $442 million.

Alan Johnson, who was LDM’s president and CEO, is president and COO of the combined company, which has 6,000 employees and 33 plants.

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Brown founded Plastech in 1988. It has since become one of the 10 largest U.S. corporations owned by a woman.

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