MILWAUKEE (June 1, 2015) - Jason Industries, Inc., announced that it has acquired DRONCO GmbH (DRONCO), one of Europe's leading manufacturers of abrasives, for approximately [Eur]32 million in cash and [Eur]10 million of assumed liabilities.
With approximately [Eur]40 million of revenue, DRONCO will be integrated into Jason's Finishing segment, the leading global producer of technical and maintenance brushes, polishing tools and compounds.
Through the acquisition of DRONCO, Jason Industries, Inc., enters a targeted faster growing $6 billion adjacent abrasives market segment.
Jason Industries, Inc., believes that Jason Finishing is uniquely positioned to expand DRONCO though its established global sales and logistics network, making its products available to broader markets. DRONCO product distribution will be expanded to Jason Finishing customers in Europe and North America, and to meet demand for abrasives in developing and higher-growth emerging markets.
"DRONCO has earned a privileged reputation as an innovative technology leader that produces high-quality products. We believe that DRONCO is an outstanding strategic fit and we are excited to welcome the company to the Jason family," said David Westgate, chief executive officer of Jason Industries, Inc.
"Through this acquisition we simultaneously enter a market that is undergoing a steady rise in worldwide demand, further globalize our finishing business, and are presented with substantial opportunities for future growth. We anticipate that the DRONCO transaction will deliver shareholder value in both the near- and long-term as we achieve growth, cost and sales synergies."
Jason funded the acquisition through a combination of cash on hand and the assumption of DRONCO liabilities.
Fiscal 2015 Outlook:
Jason Industries, Inc., anticipates the integration of DRONCO with Finishing will generate approximately $2.5 million in annual cost synergies within approximately 18 months. With the addition of DRONCO, Jason now expects 2015 net sales in the range of $708 to $723 million and Adjusted EBITDA in the range of $87 to $91 million. Prior guidance was net sales in the range of $685 to $700 million and Adjusted EBITDA in the range of $84 to $88 million.
Jason Industries, Inc. is the parent company to a global family of manufacturers within the seating, finishing, components and automotive acoustics markets, including Assembled Products (Buffalo Grove, Illinois), Janesville Acoustics (Southfield, Michigan), Metalex (Libertyville, Illinois), Milsco (Milwaukee, Wisconsin), Osborn (Richmond, Indiana and Burgwald, Germany) and Sealeze (Richmond, Virginia).
DRONCO GmbH is a European manufacturer in the area of abrasives and sells its products in approximately 100 countries.