International Automotive Components Group North America Inc. said today that it has completed two acquisitions of plants previously owned by troubled auto supplier Collins & Aikman Corp.
The first part of the deal includes Collins & Aikmans soft trim division. The unit employs about 3,900 workers and is a group of 16 plants in North America that makes carpet, molded flooring products and dashboard insulators. That division also includes a key technical center in suburban Detroit that conducts noise and vibration tests.
This month, International Automotive Components also completed the acquisition of Collins & Aikmans plant in Saltillo, Mexico. That plant makes injection molded parts including instrument panels, doors and interior trim and employs about 250 workers.
IAC Group said the acquisitions generate annual sales of about $600 million. The company paid $126 million and the assumption of liabilities for the soft trim division.
David Youngman, vice president of communications for Collins & Aikman, said the original purchase price for the Saltillo plant was about $6 million.
IAC Group is the automotive interior giant assembled by New York financier Wilbur Ross over the past two years.
We have been trying to buy these operations ever since Collins & Aikman filed for bankruptcy because strategically they give us a major position in the automotive carpet and acoustics sector and strengthen our Mexican manufacturing base, Ross said in a statement.
Still pending is IAC Group's agreement to acquire Collins & Aikmans coveted plant in Hermosillo, Mexico. The 430,000-square-foot factory has about $200 million in annual sales and assembles an award-winning interior for Ford Motor Co.s Fusion sedan. The plant is widely regarded as Collins & Aikmans most valuable.
IAC Group was formed mostly through acquisitions of Collins & Aikman plants and through the acquisition of Lear Corp.s European and North American interiors divisions.
Including the acquisitions, International Automotive Components expects to generate more than $5.2 billion in annual sales. At that level, the company would rank No. 28 on the Automotive News list of the top 100 global suppliers in terms of global original-equipment sales.
Collins & Aikman filed for Chapter 11 bankruptcy protection in May 2005 and is either selling or closing all of its operations.
David Stockman, the suppliers former CEO known for being President Reagans budget guru in the 1980s, is awaiting a federal criminal trial for his role in the companys demise. He was indicted last spring for allegedly misleading investors with false financial statements and accounting schemes. He denies the charges.