Plastal acquires Dynamit Nobel Kunststoff

Plastal Holding AB (Plastal), the Swedish-based supplier of injection moulded plastic parts to the automotive industry has signed an agreement to acquire the German company Dynamit Nobel Kunststoff (DNK) from GEA Group Aktiengesellschaft.

DNK is a leading European manufacturer of thermoplastic and thermoset exterior parts mainly for the automotive industry. DNK sales were EUR 915 million in 2004 and the company has approx. 5,000 employees. Headquartered in Weissenburg, Bavaria it operates 26 manufacturing facilities with locations in Germany (13), France (2), Spain (4), Italy (1), UK (1), Slovakia (2), Turkey (1) and Argentina (2). DNK is also, through its subsidiary Menzolit-Fibron, the European market leader in the production of compounds, sheet moulding compounds and long fibre reinforced thermoplastic for the automotive industry and industrial applications. The combination of Plastal and DNK will create one of the largest suppliers in Europe for injection moulded plastics components to the automotive industry. The new combined company will have sales around EUR 1.4 billion and approx. 7,500 employees. The combination will have operations in 13 countries and 39 manufacturing facilities. The future strategy will be based on a solid platform; innovations and quality leadership that have resulted in long-term relationships with major European OEMs including Audi, BWW, Daimler-Chrysler, Iveco, SAAB, Volvo and VW. In addition the company will enjoy strong positions with Ford and General Motors in Europe. No single OEM will represent more than 15% of the combined sales. The focus will be to continue on supplying premium products to the premium segment and thereby the new company will benefit from the rising share of plastics in automotive applications as a result of the continuous substitution of other materials. “This combination is a major step for both Plastal and DNK” says Christer Palm, CEO of Plastal. “The fit between the two companies is unique. They have a complementary customer base and market coverage and similar product offerings, corporate culture and way of working. I see a great potential in us becoming better equipped to meet our customers’ demands both when it comes to products and capacity. The combined company will also have a solid financial base.” The transaction is subject to regulatory approvals. In connection with this transaction Plastal has signed an agreement with Johnson Controls Inc. to acquire their minority shareholding of about 27% in Menzolit-Fibron. For further information please contact Christer Palm, CEO of Plastal Holding AB, +46 (0)303 24 67 76 (office phone) or +46 (0)709 288 299 (cell phone) Plastal is a supplier of engineered plastic products to the European automotive industry. The product portfolio consists of exterior products such as bumpers, sill covers, spoilers, trim parts, exterior panels and chromed grills. Interior products supplied include instrument panels, centre consoles, panels and decorative trim, among others. Plastal operates in total 13 plants in seven European countries and is headquartered in Kungälv, Sweden.In 2004 Plastal had a turnover of about EUR 510 million and some 2,300 employees. Major customers to Plastal are Volvo Cars, Iveco, GM – incl. Saab and Opel, Fiat, BMW, VW Group and Daimler-Chrysler. Nordic Capital Fund V is the majority owner (82%) of Plastal and management owns 18%. Dynamit Nobel Kunststoff is a supplier of bumper systems, sill covers and exterior trim parts with major customers being Ford, Daimler-Chrysler, VW/Seat, Audi, BMW, Smart and GM. DNK also supplies products based on sheet moulding compounds (SMC) and fibre reinforced plastics where the customers are mainly commercial vehicle producers such as Daimler-Chrysler, VW, MAN, John Deere and Volvo, but as well car manufacturers like BMW and Mercedes. DNK has in total 26 plants in seven European countries and in Argentina. The company had a turnover in 2004 of EUR 915 million and approx. 5000 employees.