German interior auto parts specialist Grammer has acquired a leading European car headrest manufacturer Nectec Automotive of Ceska Lipa, Czech Republic, for an undisclosed sum.The takeover of Nectec, a subsidiary of compounding and auto components group F.S.Fehrer of Kitzingen, Germany, was completed this month following the deal’s approval by antitrust authorities.
Nectec, with one plant at Ceska Lipa, has a workforce of around 240 and generated sales worth €30m during 2011.
The deal also boosts Grammer’s position in Asia as it has acquired Nectec’s 50% stake in a joint venture with Chinese automotive supplier Ningbo Jifeng of Ningbo, China. The German buyer already has Chinese operations in Changchun, Tianjin and Shanghai.
This is another step forward for Grammer’s strategy in what is an important region and improves its strategic access to both international and local vehicle manufacturers in China.
“Nectec’s product range and production location make it an ideal fit with our existing structure. This takeover further expands our strongest revenue-generating segment and reinforces our position in Europe's headrest market,” commented Grammer’s CEO Hartmut Müller.
Nectec was founded in 2007 as a partnership between Fehrer and Solingen, Germany-based car seating specialist F. Rob. Hammerstein. The Czech business became a wholly owned subsidiary of Fehrer when Hammerstein was bought by Johnson Controls in 2011.