Cambridge Industries Acquires Two Major Automotive Component Suppliers, Establishes Dominant Market Position
14 July 1997
Cambridge Industries Acquires Two Major Automotive Component Suppliers, Establishes Dominant Market Position
MADISON HEIGHTS, Mich., July 14 -- Cambridge Industries Inc.
today announced it has acquired Eagle-Picher's plastics division and Goodyear
Tire & Rubber Co.'s composites business. Cambridge emerges as the dominant
supplier of composite structural/functional and exterior body components and
systems to the North American automotive and heavy-truck industries, and as
the largest compression molder in the world.
With pro forma 1996 sales of $510 million, Cambridge has achieved a
stellar compound annual growth rate of 120 percent from 1991 through 1996, pro
forma.
Cambridge acquired Eagle-Picher's plastics division with operations in
Grabill, Huntington and Ashley, Ind., and Goodyear's engineered composites
business in Jackson, Ohio.
Eagle-Picher's sheet molded composite (SMC) automotive products include
door assemblies, spoilers, grille opening panels, headlamp carriers and tail
lamp housings. The company also serves the industrial, farm and watercraft
market with products such as residential doors, tractor hoods and watercraft
decks and covers.
According to Kevin Alder, president and COO of Cambridge, the acquisition
of the Eagle-Picher plastics division is important to Cambridge for a number
of reasons:
* Extensive Class A paint capabilities
* Facility capacity for new programs
* SMC material production, consolidation opportunities
* Further entree into Japanese transplant customers
* Joint venture with Dong Yang Ltd. in Korea
* Further product-line and customer diversification into farm and
industrial products
Goodyear supplies automotive exterior components and systems, such as body
panels and grille opening reinforcements and panels. Goodyear also produces
exterior parts for the heavy-duty trucking industry, such as compression-
molded SMC hoods for Ford Motor Co.'s Aeromax.
Alder said Goodyear offers Cambridge:
* Further penetration into the medium- and heavy-duty trucking industry
* Expansion of process and product diversity
* Diversification of farm and industrial customer base
"These acquisitions build the critical mass we need to operate as a large
organization," Alder said. "The acquisitions further enhance our program
management, information systems and engineering resources. Cambridge will
continue to grow through expanding current business with existing customers
and additional mergers and acquisitions."
"As the dominant supplier of automotive composites in the world, Cambridge
Industries is committed to serve our customers by leading the way in continued
industry research and development," said Richard Crawford, president and CEO
of Cambridge Industries. "We are committed to resolving some of the
challenges the industry faces today, including lowering costs, eliminating
paint and surface issues, and perfecting mold in color."
Cambridge Industries Inc. is a privately-owned, world-class manufacturer
of exterior, structural/functional and interior components and systems to the
global automotive industry. It is among the largest, most diverse processors
of thermoplastic and thermoset materials for the automotive and commercial
truck industries. Cambridge employs approximately 4,400 people with
manufacturing facilities in Michigan, Ohio, Indiana, Illinois, North Carolina,
New York and Ontario, Canada.
SOURCE Cambridge Industries Inc.