Johnson Controls, a major US-based supplier of automotive seating systems, interior components and electronics, has signed a purchase agreement to acquire the C. Rob. Hammerstein Group (CRH).
CRH is a global supplier of metal seat structures and mechanisms and is recognized for its high level of quality. CRH's headquarters and main development facilities are based in Solingen, Germany.
"The acquisition of CRH will substantially enhance our seat product offering as it will advance our strong market position through global manufacturing capabilities, innovation and further optimization of our portfolio," said Beda Bolzenius, vice president, Johnson Controls and president, Automotive Experience. "We will maintain the CRH brand name as it is synonymous with high quality metal structures and components."
The acquisition will create new opportunities for global growth and vertical integration in the premium vehicle segments where CRH has a proven track record, Johnson Controls said in a statement.
"Through the combination of CRH's advanced technology capabilities, such as its highly precise gearbox units, with Johnson Controls' electronic body controller knowledge enables us to provide entirely new solutions in all automotive mechatronic applications," added Bolzenius.
CRH is equally enthusiastic about the combination. "This transaction marks a very significant step in our history,” said Robert Houston, CEO of CRH. “We have carefully analyzed Johnson Controls' proposal and concluded that it clearly represents a unique opportunity for the CRH Group to best meet the future challenges of our industry, such as fast growing globalization and platform standardization.
"Together both companies intend to establish a best in class metal-organization within the global seating components business, which will be a milestone for CRH and will honor our family owned company."
The CRH business will be integrated into the Johnson Controls metal and mechanisms unit, part of its recently carved out seating components group within the Automotive Experience business.
Completion of the acquisition, which is subject to customary regulatory approvals, is expected by the end of January 2011. Financial details regarding the transaction were not disclosed.
