Gonzalez Production Acquires Operations of Clearr Industries
24 September 1999
Gonzalez Production Systems Acquires Operations of Clearr Industries; Merger Creates 'Powerhouse' in Machine Tool Systems for Auto Body Closures
MADISON HEIGHTS, Mich., Sept. 23 -- Gonzalez Production
Systems, Inc., an automotive machine tool supplier, has acquired the Pontiac,
Mich. operations of machine tool specialty company Clearr Industries, Inc.,
enhancing the company's expertise in automotive body-in-white closure systems.
Terms of the transaction were not disclosed.
"Completion of this acquisition fulfills the long-term strategic goal of
the Gonzalez Design Group to become a full-service supplier in each of our
four commodity arenas," said Ric Gonzalez, president and CEO of Gonzalez
Production Systems. "Additionally, the increased capacity and the Quality
Management System that Clearr provides addresses our customers' desire to work
with larger minority suppliers with proven quality capabilities, strengthening
the value-chain relationship."
"With this acquisition, we're merging two outstanding operations to create
a powerhouse enterprise offering automakers and body panel suppliers an
unmatched combination of customer focus, expertise and heritage," said Rick K.
Borst, vice president of operations for Gonzalez Production Systems. "Adding
the Clearr Pontiac operations to our own dramatically extends our design and
manufacturing capabilities. It also creates some unique synergies with our
parent companies -- the Gonzalez Group and Progressive Tool & Industries Co.
(PICO) -- themselves two of the most respected names in the manufacturing
tooling business."
Gonzalez Production Systems intends to retain the approximately 150
experienced employees of Clearr's Pontiac operation, who were key to the
company's past growth.
Initially, Borst said, Gonzalez Production Systems will focus on the
manufacture of closure, welding and assembly systems for automakers and tier
one suppliers within the North American market. Sales for the company are
expected to be approximately $50 million for 1999, making Gonzalez Production
Systems the largest certified minority business in the machine and tooling
industry.
Borst said he believes several factors will drive stable, steady growth
for the company, including its keen focus on customers, technical expertise,
team approach, proven ISO9001-certified quality operating system and
concentration on its core competencies -- as well as the auto industry's
increasing commitment to minority suppliers.
With this acquisition, Gonzalez Production Systems now operates dedicated
facilities in Pontiac and Oak Park, Mich., covering a total of more than
210,000 square feet and employing about 175 people. Customers of the expanded
Gonzalez Production Systems include The Budd Co., DaimlerChrysler Corp., Ford
Motor Co., General Motors Corp., Saturn Corp. and PICO.
Clearr Industries -- most recently owned by Charles G. Long, Edward J.
Apfel and Michael J. Kuron -- was founded in 1979 to specialize in tooling for
body-in-white closure systems.
Gonzalez Production Systems, which derives from a joint venture created in
late 1998, is 51 percent owned by Ric and Gary Gonzalez, principals of the
Gonzalez Group, and 49 percent owned by PICO Holdings Corp.
About The Gonzalez Design Group
Established in 1975 as Gonzalez Design Engineering Co., the Gonzalez
Design Group has grown into the auto industry's leading minority-owned
engineering enterprise, offering a comprehensive range of engineering and
design services to the automotive, aerospace and communications industries.
Based in Madison Heights, Mich., with nearly 1,000 employees and more than
$100 million in sales in 1998, the Gonzalez Design Group comprises six
operating units:
* Gonzalez Design Engineering -- a supplier of welding systems and
assembly tool design, automation and manufacturing process engineering;
* Gonzalez Manufacturing Technologies -- which offers total design and
build capabilities in weld guns, prototyping and production tooling, fixtures,
gauges and material handling systems;
* Gonzalez Contract Services -- which provides contract engineers,
designers, technicians, programmers and graphic artists to automotive and
communications clients;
* Gonzalez Integrated Marketing -- which offers marketing communications
services, from marketing strategies through print production of annual reports
and promotional materials;
* Gonzalez Graphic Communications -- which provides specialized graphic
services including technical illustration, technical manuals, corporate
identity packages, desktop publishing, web site development and lithography;
and
* Semi-Kinetics -- which produces electronic printed circuit boards and
assemblies for the automotive, telecommunications and computer markets.
About PICO
Progressive Tool & Industries Co., of Southfield, Mich., was founded in
1939 by Anthony Wisne and grew to become North America's leading designer and
producer of automotive body assembly systems. Operating 25 facilities in the
United States, Canada, Mexico, the United Kingdom, Germany, Brazil, Argentina
and South Africa, PICO now has 2.5 million square feet of manufacturing space
under-roof and employs 5,300 people.
PICO's full-service manufacturing systems offering includes body-in-white
welding and assembly systems, trim and chassis assembly systems, dies,
assembly and test equipment, and service maintenance of in-plant equipment.
With 1998 sales of approximately $800 million, PICO was recently acquired by
Fiat S.p.A. of Turin, Italy. Together, PICO and Fiat's Comau operations
create the world's largest transportation production systems group with
estimated annual sales of approximately $2 billion.