AIRBOSS of America Corporation has entered into an agreement to acquire all the shares of Flexible Products Co., a privately-owned US company, which supplies innovative and cost-effective anti-vibration solutions to the North American automotive market.
Robert Hagerman, President and CEO of AirBoss says that the acquisition will provide an expanded product offering and diversification of revenue and cash flow for the firm.
Flexible products has customer base in Mexico, South America and Asia. It says it has direct customers include the Big 3 automakers as well as some of the major Tier 1 & 2 suppliers to both domestic and transplant automotive manufacturers. It has a commercial, engineering and manufacturing presence in Auburn Hills, Michigan, with 311,000 sq ft of manufacturing space split between three facilities.
According to the two firms, the acquisition will be financed with debt, with the company entering into a new debt facility with a consortium of financial institutions and by its existing bankers.
Upon completion of the transaction, there will be approximately US$30 million in undrawn facilities still available;
The acquisition provides revenue and cash flow diversification within AirBoss’s Rubber Compounding segment; The current Flexible Products management team will continue to run the day to day operations.
The acquisition is expected to close on October 16, 2013, and is subject to customary closing conditions.