Teijin Frontier Co., Ltd. has agreed to acquire J.H. Ziegler GmbH, a leading German supplier of automotive interior materials, at a cost of approximately 125 million euro. Ziegler will become a wholly owned subsidiary of Teijin Frontier.
The acquisition of Ziegler will be made by means of cash and newly raised funding, and is scheduled to be completed in August 2018 after confirmation that all customary closing conditions, including regulatory approval, have been met.
Headquartered in Achern-Oberachern, Ziegler supplies advanced nonwoven lining structures, including materials with superior ventilation capabilities that help prevent wrinkling and keep luxurious appearance of genuine leather materials. The company also produces market-leading top-quality sound-absorbing materials and nonwovens for home interior and heat insulation use. The company operates five facilities globally, including three in Germany and one each in Hungary and China, and employs approximately 400 staffers. It posted consolidated sales of over 69 million euro in the fiscal year ending December 31, 2017.
Through the acquisition, Teijin Frontier will improve its automotive interior materials’ production and sales capabilities in Europe, thereby enhancing its presence in the global automotive market and allowing it to increase its enterprise value. To drive the sales of Ziegler products that can meet growing demand for low-noise electric vehicles (EV) driving environments, Teijin Frontier plans to optimize Ziegler’s design and production structures.
By utilizing its R&D and production functions of filaments and staple fibers, Teijin Frontier will develop innovative materials that achieve higher sound-absorbing property, using its ultra-fine fibers. Teijin Frontier will also seek business synergies by leveraging the production and sales facilities of Continental Structural Plastics, a North American hub of the Teijin Group’s composite business and Ziegler’s sales channels in order to develop new businesses related to automotive interiors and exteriors.