Gentherm, a global thermal management technologies company based in Northville, today announced it has entered into a definitive purchase agreement to acquire the automotive business of Alfmeier Präzision SE (Alfmeier) for $189.6 million (€177.5 million) in cash, subject to adjustments.
Alfmeier is a German-based automotive lumbar and massage comfort solutions company with expertise in advanced valve system technologies, integrated electronics, and software. Alfmeier pioneered the use of Shape Memory Alloy (SMA) valve and pump technology for automotive seats and continues to be an industry leader in innovation with more than 200 patents.
Additionally, the company produces high-complexity, high-reliability valves for automotive fluid systems. With approximately 2,200 employees globally, Alfmeier has operations in Germany, the Czech Republic, the U.S., Mexico, and China. It’s automotive business to be acquired generated $244.4 million (€232 million) in revenue in 2021.
“Alfmeier’s automotive business is a perfect complement to Gentherm’s existing capabilities and will further drive our mission to improve comfort, health, wellness, and energy efficiency,” says Phil Eyler, president and CEO of Gentherm. “This transaction aligns well with global consumer demand for expanded offerings in vehicle passenger comfort. Combining Alfmeier’s technological advancements in physiotherapy with Gentherm’s expertise in thermophysiology maximizes our capabilities of providing world class comfort and wellness solutions.
“In addition, Alfmeier’s industry leading expertise in air and liquid flow valve systems should also open additional growth opportunities for Gentherm’s ClimateSense and Battery Performance Solutions. We look forward to welcoming the members of the Alfmeier team to the Gentherm family.”
Gentherm says the acquisition allows it to offer more compelling and high-value solutions across complementary customer relationships, leveraging the combined technologies, teams, and capabilities.
It also sees an opportunity to integrate the highest performing comfort and wellness solutions in the most space efficient manner, which is particularly important for electric vehicles that demand compact integrated designs. In addition to revenue synergies, the company expects to achieve approximately $10 million in annual run-rate cost savings.
“I am excited to see the combination of two unique system design companies with integrated hardware and intelligent software. Alfmeier, as part of Gentherm, will be able to deliver a superb passenger experience through highly cost-efficient systems at a much larger scale,” says Andreas Gebhardt, CEO of Alfmeier. “Automakers around the world will benefit from the innovative culture of both companies with integrated market-leading thermal and physical comfort solutions.”
The transaction will be funded through a combination of Gentherm’s existing cash balances and revolving credit facility. The transaction, subject to regulatory approvals and other customary closing conditions, is expected to close during the third quarter of 2022.
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