GenCorp Buys Draftex

FARMINGTON HILLS, Mich.--GenCorp has bought Draftex International Car Body Seals, creating the world’s second-largest automotive sealing supplier and the largest North American supplier of highly engineered vehicle sealing systems--claiming nearly one-third of continental sales volume.

The purchase price was about $198 million, and it includes the Draftex Worldwide Headquarters and International European Technical Center in Dusseldorf, Germany, and 11 manufacturing plants in six countries--Germany, France, Spain, China, Czech Republic and the U.S. An undetermined amount of layoffs are expected.

Draftex will become part of GenCorp Vehicle Sealing, which provides sealing technology for sport utility vehicles and is a major supplier of sealing systems for passenger cars and pickup trucks. The segment reports to Joseph Gray, GenCorp vice president and president of GenCorp Vehicle Sealing.

“We are excited to welcome Draftex, with its complementary customer and platform bases, global capabilities and relationships, and outstanding people and technologies to GenCorp Vehicle Sealing,” said Gray, who predicted worldwide layoffs. “As we immediately begin integration activities, we expect to realize important cost synergies, through management consolidation and the rationalization of production capability on both continents.”

Draftex adds about $415 million in annual sales to GenCorp for total Vehicle Sealing sales of some $875 million. It also adds 5,484 employees worldwide for total Vehicle Sealing employment of 10,370.

“Together, GenCorp and Draftex provide a substantially broadened and more diversified customer base,” said Gray, “and a balanced portfolio that is ideally positioned to grow, innovate and change with the marketplace.”

A division of The Laird Group for more than 30 years, Draftex maintains global relationships with Volkswagen, BMW, Mercedes, Renault and Ford. It is a key sealing supplier on platforms that include the Ford Focus, Volkswagen Golf and Renault Scenic.

GenCorp Vehicle Sealing, with headquarters in Farmington Hills, Mich., operates five manufacturing facilities in North America, two European plants located in Germany and Ireland, and three dedicated technical centers: Farmington Hills; Wabash, Indiana; and Rehburg, Germany.

Principal sealing platforms include the Ford F-Series and Ranger Pickups, Ford Explorer, General Motors Chevrolet Pickup and the Mercedes All-Purpose Vehicle.

For more information, contact www.GenCorp.com.