Cambridge Industries Acquires Two Major Automotive Component Suppliers, Establishes Dominant Market Position
14 July 1997Cambridge 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.