On August 23, 2023, ABC Technologies Holdings Inc. (TSX: ABCT), a prominent manufacturer and supplier in the global automotive industry, recently announced its agreement to acquire a North American automotive business, which will be rebranded as Plastikon Automotive. This business was part of Plastikon Industries, known for supplying automotive interiors, assemblies, and electric vehicle (EV) battery housing.

Plastikon Automotive, established over 40 years ago, manages three U.S. facilities in Hayward, CA; Austin, TX; and Leitchfield, KY. The company employs around 900 people and has a diverse portfolio that includes battery module housings, injection molding headliners, and various other automotive components. It boasts expertise in several technical areas such as injection molding, plastics welding, and robotic assembly. For fiscal 2022, Plastikon Automotive reported revenues of approximately US$280 million.

Terry Campbell, ABC Technologies' President and CEO, highlighted the acquisition as a significant development, enhancing ABC's leadership in lightweighting and plastic injection molding, and strengthening its position in the EV market. The acquisition also aims to provide new opportunities for Plastikon Automotive's employees.

The transaction, valued at US$130 million, is expected to finalize in the third calendar quarter of 2023, subject to standard closing conditions. It is financed through ABC Technologies' credit facility. Scotia Capital and TD Securities served as ABC Technologies' financial advisors, while Stifel advised Plastikon. Legal counsel was provided by Paul, Weiss, Rifkind, Wharton & Garrison LLP for ABC Technologies and Morrison & Foerster LLP for Plastikon.