ABC Technologies enters into an agreement to acquire WMG Technologies

CIOTechOutlook Team | Friday, 23 December 2022, 03:01 IST

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For US$165 million (the "Initial Close"), ABC Technologies Holdings Inc., a top producer and supplier of specialised, highly engineered, technical plastics and lightweighting innovations to the global automotive industry, announced today that it had entered into a definitive agreement to buy WMG Technologies ("WMGT") from the Bierer family. Earn-out payments could become due if certain profitability goals are met over the following three years.

WMGT, a key tier-1 and tier-2 supplier to significant global automobile OEMs with operations across North America, was established in 1972 and is headquartered in Windsor, Ontario. WMGT is a leading supplier of sophisticated tooling for injection moulded exterior and interior parts, lighting moulds, and optic inserts in addition to offering a wide range of supplementary exterior items. The revenue generated by WMGT during its fiscal year that concluded on April 30, 2022, was over US$270 million.

“WMGT brings with it a rich history as a family-owned Canadian business that parallels ABC’s own story. Founded two years apart, both companies built strong legacies guided by intentional and focused leaders. Six years after our own transition from being a family-owned business, ABC is excited to welcome WMG into its next exciting chapter as part of the ABC family,” said Terry Campbell, President and CEO of ABC Technologies. “This acquisition strengthens ABC’s exterior products offering, expands our injection molding technical expertise and brings additional value-added tooling in-house.”

David Mastronardi, President and CEO of WMG Technologies said, “As we move past a key 50-year milestone in our history, driven by a passion for innovation and the relentless pursuit of excellence, I’m excited to usher in the next phase of WMGT’s journey under ABC’s stewardship. I’m confident that the combination of our businesses – enabled by a continued focus on people, quality, and customers – will catalyze meaningful growth and opportunities while establishing the combination as a supplier of choice.”

The Company expects to drawdown from its Credit Facilities to pay for the Initial Close (as hereinafter defined). On December 5, 2022, ABC changed and restated its current credit agreement (the "Credit Facilities") in order to, among other things, permit the WMGT Acquisition, provide an additional term facility to be used only in connection with the WMG Acquisition and to be funded at the Initial Close, and provide more flexibility.

Following the satisfaction of customary closing conditions and regulatory approvals, including the approval of the Canadian Competition Bureau and the Mexican Federal Economic Competition Commission, the transaction is anticipated to close in ABC Technologies' Fiscal Third Quarter 2023 (1st Quarter CY 2023) at the latest.

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