ABC Technologies’ Acquisition of WMG Technologies Will Bolster Molding Portfolio
A supplier to global automotive OEMs, ABC Technologies Holdings Inc. has entered into a definitive agreement to acquire family-owned WMG Technologies (WMGT), a Tier 1 and 2 supplier of automotive exterior parts, injection mold tooling, and lighting molds and inserts. The deal is valued at $165 million with potential earn-out payments based on profitability targets over the next 24 months.
Based in Windsor, ON, WMGT was founded in 1972 and operates facilities across North America. For its fiscal year ending April 30, 2022, WMGT generated approximately $270 million in revenue.
ABC Technologies is headquartered in Toronto and specializes in engineered technical plastics and lightweighting innovations for automotive applications. It was founded in 1974 and transitioned from a family-owned business in 2016, when it was acquired by Cerberus Capital Management. The acquisition of WMGT “strengthens ABC’s exterior products offering, expands our injection molding technical expertise, and brings additional value-added tooling in-house,” said Terry Campbell, President and CEO.
David Mastronardi, President and CEO of WMG Technologies said, “As we move past a key 50-year milestone in our history, driven by a passion for innovation and the relentless pursuit of excellence, I’m excited to usher in the next phase of WMGT’s journey under ABC’s stewardship. I’m confident that the combination of our businesses — enabled by a continued focus on people, quality, and customers — will catalyze meaningful growth and opportunities while establishing the combination as a supplier of choice.”
The transaction is expected to close in the first quarter of 2023 following customary closing conditions and regulatory approvals, including the approval of the Canadian Competition Bureau and the Mexican Federal Economic Competition Commission.