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ABC Technologies to Acquire German Automotive Supplier Karl Etzel
Friday 21 January 2022

Canada-based automotive industry plastics and lightweighting innovations supplier ABC Technologies Holdings Inc. (TSX: ABCT) has entered into a definitive agreement to acquire German luxury OEM market supplier Karl Etzel GmbH from the Schürrle family for approximately USD 95m, the company said.

Based in Muhlacker, Germany, Etzel was founded in 1976 and is a tier-1 and tier-2 supplier to the German luxury OEM market.

ABC said Etzel's expertise in injection molding plastics for OEM interiors and exteriors will grow its product suite in the European market as well as provide greater diversification to German-based global OE.

For the LTM period ended November 2021, Etzel generated approximately USD 100m in revenue.

The Etzel acquisition is subject to approval by the German Federal Antitrust Office and the Austrian Federal Competition Authority. The Etzel acquisition is expected to close in ABC Technologies' Fiscal Third Quarter 2022 (1Q22).

Blake, Cassels and Graydon LLP and Ashurst LLP are counsel to ABC Technologies. Evercore is sole financial advisor to ABC Technologies and its board of directors. Sparkasse Pforzeim Calw is financial advisor and Bender Harrer Krevet are counsel to Etzel.

Apollo and Oaktree, through their managed funds, are investors in ABC Technologies. Paul, Weiss, Rifkind, Wharton and Garrison LLP and Goodmans LLP are counsel to Apollo and Stikeman Elliott LLP is counsel to Oaktree in connection with the Etzel acquisition Financing Commitment.

ABC Technologies is a manufacturer and supplier of custom, highly engineered, technical plastics and lightweighting innovations to the North American light vehicle industry, serving more than 25 original equipment manufacturer customers globally.

The company operates in six product groups: HVAC Systems, Interior Systems, Exterior Systems, Fluid Management, Air Induction Systems, and Flexible and Other.

Apollo is a global alternative asset manager.

Oaktree is a global investment manager specializing in alternative investments, with USD 158bn in assets under management as of September 30, 2021.
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Date Published: 21/01/2022

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