May 10, 2016 [Shop Metalworking Technology] – Two Quebec-based manufacturers and an investment firm have formed a group to acquire a US Tier 2 automotive parts manufacturer.
The Mundial Group, Verbom and MB Capital have acquired International Manufacturing and Assembly (IMA), based in Royal Oak, MI. IMA is a 14 year-old Tier 2 automotive supplier of metal components and manufactures complex, tight tolerance, thin walled aluminum extrusions for the automotive market. The purchase price was not disclosed.
The Mundial Group operates several manufacturing business in Quebec, including two metal fabricating businesses, Metal Bernard and Normandin, and UCB, a precision CNC and conventional machining operation. Verbom, is a metal stamping company based in Valcourt, QC, specializing in tool and die and aluminum processing. MB Capital is an investment firm, that helped to provide part of the funding required to purchase the US business, says Louis Veilleux, CEO of Metal Bernard.
“The acquisition was larger than the Mundial Group would have been able to purchase on its own and the financing was complicated. We decided to join with Verbom, a young entrepreneurial company in Quebec and because the deal was quite a large one, we need three angel investors to accomplish this with the help of MB Capital.”
IMA is one of the largest suppliers of components such as cargo covers housing, window guide rails and trunk cargo rails, as well as delivers stainless steel high-pressure fuel rails and air bag gas flow tubes. It has also just concluded a major contract for the manufacture of running boards.
The 25,000 sq ft Michigan facility is equipped with an automated production system. The company has a long-term joint venture with a high quality manufacturing plant based in Jilin Province, China. IMA has developed its capability over the past 10 years to competitively extrude, machine, and coat within a single facility of over 400 team members to automotive standards. In addition to its manufacturing locations in the USA and China, the company has warehouses located in Mexico, Shanghai China, along with sales and engineering representatives based in Europe, China, and USA.
IMA’s founder, Gilles Testé, will pursue IMA’s growth within the company as CEO and shareholder. Alongside the new investors, Testé will maintain the accelerated growth of the company while actively looking for short and medium term synergistic acquisitions.
Veilleux, whose divisions Metal Bernard and Normandin have been featured in Shop Metalworking Technology Magazine, says Group Mundial plans to continue to expand through acquisitions. Just last year, the company a Quebec machine shop business called JLM Usinage.
“We’ll acquire more companies in the near future. Mexico, the US and even Canada have opportunities for businesses that want to become more global. By acquiring IMA, Group Mundial and Verbom can now share in the growth of all the businesses.
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