Jason Industries acquires DRONCO
Jason Industries Inc. has acquired DRONCO GmbH, a German manufacturer of abrasives, for approximately $34.5 million in cash and $11.2 million in assumed liabilities.
DRONCO will be integrated into Jason's Finishing segment. Through the acquisition of DRONCO, Jason enters a targeted faster growing $6 billion adjacent abrasives market segment. By adding abrasives to its product portfolio, Jason solidifies its position as a complete surface technology and finishing solutions leader, while benefitting from significant cross-selling opportunities, the company said.
The company 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. "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."
INDUSTRIAL SUPPLY MAGAZINE
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