Ohio-based Shiloh Industries Inc. is buying 100% of the shares of Finnveden Metal Structures from its current owner, FinnvedenBulten AB, adding stamping and magnesium diecasting capabilities to its current portfolio, which includes body-in-white structures, seating systems, acoustic products, emissions system products, and specialty assemblies.
The FinnvedenBulten group is a Swedish holding company of metal producing and metal parts manufacturing operations, in particular fastener systems.
Shiloh noted that both the stamping and magnesium diecasting are additions that will allow it to address automakers’ “lightweighting” initiatives.
"We are continually evaluating the lightweighting needs of the industry, identifying new technologies that address those needs, and bringing them into Shiloh's lightweighting portfolio," stated Ramzi Hermiz, president and chief executive officer, Shiloh Industries. "By adding the magnesium capabilities of FMS, Shiloh now has the broadest portfolio of lightweighting solutions in the industry.
“Together, we believe our unique ability to provide solutions in steel, steel alloys, aluminum and magnesium through multiple processes will increase our value proposition to the market." Hermiz added.
The purchase also brings European operations into its series of 14 plants in the U.S. and Mexico.
Finnveden Metal Structures was formed in 2003 by a merger of the Finnveden group’s Sheet Metal Components division with a diecasting plant in Hultsfred, Sweden. Now, the division operates a magnesium high-pressure diecasting plant in Bielsko-Biala, Poland; and sheet metal stamping and joining operations there, and at Forsheda and Olofström, Sweden.
The new Shiloh plants have about 800 employees, according to the buyer, and annual sales revenues of $180 million.
The value of the sale is reported to be $56.6 million, and it is seen closing later this month.
Last year Shiloh acquired four former Contech Castings plants from Revstone Industries LLC’s bankruptcy liquidation, which include high-pressure diecasting and squeeze casting capabilities for automotive castings
It already owned Shiloh Die Cast Midwest LLC in Pleasant Prairie, WI, which produces high-pressure diecastings for axle housings, gear cases, valve covers, and shock towers.
"Many of our customers are looking for suppliers who can support them globally, and given our current customer base, Europe is a significant market for Shiloh," according to Brad Tolley, vice president of strategy and market development, Shiloh Industries. "As we looked to expand into Europe, what we found with FMS was a seasoned management team with strong leadership which is critical for future growth."
"Shiloh's continued success can be attributed to our key tenets of leading with technology and innovation, achieving sustainable, global, profitable growth, and acting with a sense of purpose and speed," added Hermiz.