Auto Service World
News   August 4, 2004   by Auto Service World

Spectra Premium Concludes the Acquisition of Trimag


Spectra Premium Industries, a North American manufacturer of automobile, light-truck and heavy-duty truck aftermarket parts, has announced the conclusion of the acquisition of 90% of interest in Trimag, L.P.,
(“Trimag”) under the conditions expressed in the press release of July 7. Investissement Qubec will own the other 10% of interest in Trimag.
Trimag, one of the most important North American manufacturers of high-pressure die cast magnesium alloy parts used in the automotive industry, with
approximately 150 employees, has two plants covering a total surface of 140,000 sq. ft., one in Boisbriand, Quebec, which began operations in 2002, and the other in Haley, Ontario.
“We are very pleased to integrate Trimag with SPI, since this transaction should enable us to increase annual sales by more than $50 million with original equipment manufacturers (“OEM”) for fiscal 2005-2006, besides positioning the Corporation in a sector that has great potential for growth”, declared Mr. Jacques Mombleau, President and Chief Executive Officer of SPI.
Trimag is recognized for its engineering and design expertise and its know-how relative to the molding process of magnesium parts. The modern Boisbriand plant is notably equipped with two 3,500 ton presses, which
positions Trimag as one of the few companies in North America having the infrastructure to produce magnesium parts on a large scale, such as instrument panel beams.
The acquisition of Trimag will have not have much of an impact on SPI’s net income for the current fiscal year, but should however contribute favorably to the consolidated results of SPI as of fiscal 2005-2006, as new contracts entering into production by the end of year 2004 will increase the utilization rate of both plants. The Boisbriand plant is expected to operate at full capacity as of the summer of 2005, as a new supply contract for instrument panel beams for a General Motors plant located in China will have entered into production.


Print this page

Related


Have your say:

Your email address will not be published. Required fields are marked *

*