Exco Technologies Limited has completed the acquisition of Automotive Leather Company Group (ALC) in a deal worth C$17.3m ($13m).
In 2013, ALC sales will be approximately $100 million and is expected to grow over the next several years to approximately $140 million as a new seat cover program for the family of Mini models launch over the next 16 months.
ALC specializes in the manufacture and export of luxury leather interior trim components to the middle and luxury automotive sector. The primary customer is BMW and its tiers although other German OEMs and their tiers are also customers.
ALC’s current business dates back to 1990. In 2002 it acquired a large portion of the South African trim business of BMW. Since then it has supplied quality leather seat covers and other interior trim components to BMW and other German OEMs and their tiers. After closing, several shareholders will continue to manage the ALC business and their significant shareholdings in Exco will ensure that their interests are aligned with those of Exco.
In addition to ALC’s traditional production site in the Rosslyn Automotive Supply Park in South Africa, it has in 2011 established a state-of-the-art production site near Sofia, Bulgaria and is currently establishing another production site in the Kingdom of Lesotho. Taken together these production sites employ approximately 2,000 employees. ALC also has a customer service and technical centre in Germany with approximately 25 staff enabling it to better service its German OEM customer base.
Exco has had extensive leather and seat trim experience over the years which has enabled it to develop its Automotive Solutions Group into a globally competitive supplier of all manner of fabric, vinyl and leather cut and sewn products. Exco believes that this experience, combined with the specialized capabilities of ALC in making high quality leather seat covers, will enable it to supply the German OEMs in Europe and other parts of the world while also giving Exco a state-of-the-art production facility in Eastern
Europefrom which to supply the European automotive market with its other interior trim products.