Global Fastener News

Heartland Talking to Textron Automotive

John Wolz

Heartland Industrial Partners is in exclusive discussions to acquire the instrument panel and trim units of Textron Automotive Co., according to Automotive News.
Last year Heartland acquired fastener manufacturer MascoTech, which includes Lake Erie Screw Corp., Cuyahoga Bolt & Screw, Eskay Screw, K-Tech and Monogram Aerospace Fasteners. The companies were combined under the name Metaldyne Corp..
Automotive News reported Heartland is expected to pay Textron, a key supplier to Chrysler group, about $1.2 billion for the units, according to two sources familiar with the discussions. The deal could close by late June.
Buying the Textron units fills the missing link in Heartland founder David Stockman’s strategy to build a giant Tier 2 platform to serve Tier 1 interior suppliers. It would be the second Tier 2 supplier platform created by Heartland.
Textron would bring the high-end instrument panel business and round out the carpeting, seat fabric, headliner fabric and other trim parts supplied by Collins & Aikman. It also would add to the company’s global diversification through additional sales in Europe and South America.
Textron Automotive’s trim division generated $1.8 billion in worldwide sales last year, or 63% of Textron Automotive’s $2.9 billion in global revenue. Textron Automotive ranks No. 21 on the Automotive News list of Top 150 original equipment parts suppliers to North America, with sales of $1.9 billion in 2000.
According to Automotive Nerws, “Stockman�s plan is to buy related companies to create one-stop, full-service “supplier platforms” determined to grab vertical market share by doing the menial tasks that no longer interest Tier 1 suppliers.”
Financial buyers see opportunities in buying automotive suppliers at depressed prices because of tight credit, the new-car sales slump and continued pricing pressure from the Big 3. �FastenerNews.com