PKC Group recently signed an agreement for the purchase of AEES companies from funds controlled by Platinum Equity. AEES is one of the leading North American wiring harness manufacturers for heavy and medium duty trucks and is also a significant supplier of light vehicle wiring harnesses. In addition, AEES provides components and wires to other contract manufacturers.
AEES' largest customer accounts within the truck industry are e.g. Daimler Trucks North America, Navistar and PACCAR. Major customer accounts relating to the light vehicle industry include i.a. Continental, Ford, General Motors, Harley Davidson and Lear.
In 2010, AEES generated net sales of EUR 454.0 million. AEES has operations in USA, Mexico, Brazil and Ireland and had about 13,800 employees at the end of June 2011.
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"We are excited about this unique opportunity to acquire AEES, as it offers an ideal strategic fit for our business through a highly complementary geographic footprint and customer base," commented Harri Suutari, president and CEO of PKC. "By combining AEES, a major North American truck wiring harness manufacturer, with PKC, one of the leading wiring harness manufacturers for trucks in Europe and South America, we create a leading global truck wiring harness supplier."
According to a pree release, the debt-free purchase price of AEES consists of EUR 109 million in cash and 1.25 million in newly issued PKC shares. The cash portion of the purchase price will be financed mainly with a long-term credit facility agreement.
Suutari added, "Following completion of the transaction, the combined entity supplies wiring harnesses to the six leading Western truck groups. With this acquisition, we also enter the automotive industry in North America and Brazil. Currently, PKC manufactures wiring harnesses also to light vehicles, buses, recreational vehicles as well as construction, forestry and agricultural equipment in Europe and South America, and has a small percentage of sales in North America. The acquisition hereby provides access to new customer segments and also offers PKC an opportunity to expand its product and service offering, e.g. via manufacturing of components and wires. The combined entity will employ about 22,000 employees."
Press Release: PKC Becomes a Leading Global Heavy Truck Wiring Harness Supplier Through Acquisition of AEES (marketwatch.com)
