HDT Automotive Solutions in Livonia, a global supplier of automotive tubular components used in fluid transfer and thermal management systems, has agreed to acquire the majority of the business of Veritas AG, an automotive supplier headquartered in Gelnhausen, Germany.
Veritas AG offers expertise in elastomers, plastics, and metal for fluid, HVAC, thermal, and sealing management systems. A binding purchase agreement was signed on May 16th, and the transaction is expected to close in June.
The assets of Veritas included in the transaction employ around 2,000 people at 5 locations in Europe and North America. Its customers include the top three German OEMs and many other top suppliers.
While terms of the transaction are not disclosed, the acquisition includes the majority of Veritas AG’s business, including its headquarters, technical center, and manufacturing operations in Gelnhausen, Germany (located northeast of Frankfurt), and operations in Austria, Bosnia-Herzegovina, Hungary, and Mexico.
The acquisition will significantly increase the scale and scope of HDT, further diversify its customer base, and add capabilities in rubber hose and plastic tubing to HDT’s capabilities in steel and aluminum.
The offering will allow HDT to provide customers with solutions for multiple applications, including the need for lightweight materials for alternate propulsion solutions such as EVs.
The acquisition adds manufacturing capacity in low-cost regions in Hungary, Bosnia-Herzegovina ,and Mexico. The purchase also will add world-class engineering resources to further develop thermodynamic management systems and support material science development.
Finally, the combined entity will benefit from HDT’s recent successes at penetrating the market for HVAC systems and EV battery cooling systems.
“We are very pleased to have entered into a definitive agreement to purchase the majority of the assets and subsidiaries of Veritas AG,” says Patrick Paige, CEO of HDT Automotive. “Veritas is one of the leading providers of thermal management systems in Europe and has been a critical partner to its OEM customers for decades.
“We have worked intimately with its management, customers, employees, and works council to be able to sign these definitive transaction agreements. We believe that this transaction offers the best outcome possible for the successful continuation of the majority of Veritas AG.”
The acquisition significantly increases HDT’s presence in Europe and deepens its relationships with the German OEMs. Since 2021, HDT states it has booked record levels of new business for both ICE and EV applications, with new products launching in new vehicles with innovative HVAC and Battery Cooling products, using aluminum, rubber, and steel.
HDT currently has 10 manufacturing facilities across the United States, Canada, Mexico, Italy, United Kingdom, Poland, Hungary, and China, and serves the North American, European, and Asian automotive markets.
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