On August 23, 2023, ABC Technologies Holdings Inc. (TSX: ABCT), a manufacturer and supplier to the global automotive industry, announced an agreement to acquire a North American automotive business that will be rebranded as Plastikon Automotive. The business was previously part of Plastikon Industries, a supplier of automotive interiors, assemblies, and electric vehicle (EV) battery housing.

Plastikon Automotive, established more than 40 years ago, operates three U.S. facilities in Hayward, CA; Austin, TX; and Leitchfield, KY. It employs around 900 people and produces battery module housings, injection-molded headliners, and other automotive components. The company has capabilities in injection molding, plastics welding, and robotic assembly, and reported revenues of approximately US$280 million for fiscal 2022.

ABC Technologies’ President and CEO, Terry Campbell, said the acquisition is expected to expand the company’s lightweighting and plastic injection molding capabilities and strengthen its position in the EV market. The deal is also expected to provide additional opportunities for Plastikon Automotive employees.

The transaction, valued at US$130 million (about C$175 million), is being financed through ABC Technologies’ credit facility. The deal closed on September 30, 2023. Scotia Capital and TD Securities acted as financial advisors to ABC Technologies, and Stifel advised Plastikon. Legal counsel was provided by Paul, Weiss, Rifkind, Wharton & Garrison LLP for ABC Technologies and Morrison & Foerster LLP for Plastikon.