Livonia-based auto supplier HDT Automotive Solutions LLC is acquiring Germany’s oldest rubber manufacturer in a transaction that will create a company approaching $1 billion in annual revenue.
The deal to buy Veritas AG is expected to close at the end of October, according to a Wednesday news release. Financial terms were not disclosed.
The takeover will double the size of HDT Automotive, which supplies the auto industry with tubular components, fluid-handling systems and aluminum parts. It also comes with Veritas’ book of customers, including Volkswagen Group, BMW Group, Daimler AG, Ford Motor Co. and General Motors Co., as well as the supplier’s 4,400 employees at 12 locations in the U.S., Europe, China, Canada and Mexico. The family-owned company, which traces its roots back to 1849, is the oldest rubber processor in Germany, according to its website.
“Veritas will play an important role in expanding our global business, particularly with thermal management systems required for the growing hybrid and electric-vehicle market,” Patrick Paige, CEO of HDT Automotive, said in the release. “With an expanded global footprint and the addition of key expertise in elastomers and plastics, HDT is poised for growth as we continue to serve our global customers now and into the future.”
HDT Automotive formed in 2017 as a result of a merger between Dynamic Technologies and Huron Inc. — both portfolio companies of French private equity firm Ardian.
The acquisition of Veritas brings HDT Automotive to 22 locations around the world and 8,400 total employees. The company employs around 485 at a plant in Lexington and 15 at its headquarters in Livonia, where it will continue to be based.