Jason Industries, Inc. Widens its Finishing Portfolio with Acquisition of DRONCO GmbH
DRONCO joins Osborn as members of the Jason Finishing Group; Deal broadens Jason Finishing Group's position as the complete manufacturer of surface treatment solutions and finishing tools
(PresseBox) (Burgwald, Germany / Richmond, Indiana, )Jason Industries, Inc. (NASDAQ: JASN, JASNW), parent company to a global family of manufacturing leaders in the finishing, seating, automotive acoustics and components markets, today announces that it has completed a transaction to acquire DRONCO GmbH, one of Europe's leading manufacturers of abrasives. DRONCO becomes an integral part of Jason Finishing Group, a Jason business unit and the leading global producer of technical and maintenance brushes, polishing tools and compounds. The Jason Finishing Group portfolio includes well-recognized brands, such as Osborn - the only truly global player in the industrial brush and polishing market, JacksonLea, Lippert-Unipol and Sealeze. The deal allows Jason Finishing Group to enter a targeted and faster growing $6 billion abrasives market segment and solidifies the company's position as the complete surface treatment and finishing solutions provider.
DRONCO's full range, which includes cutting, grinding and abrasive discs, diamond tools, ceramic abrasives, sandpapers and technical brushes, is the ideal complement to Jason Finishing Group's product catalog. The acquisition opens Jason Finishing Group products to customers and distribution channels where it currently has a limited presence, while allowing the company to become a "one-stop shop" within the Finishing industry.
Under its new ownership, DRONCO will be positioned for continued growth. Immediately, DRONCO products will be embedded into Jason Finishing Group's well-established, global sales and logistics network, thereby making the DRONCO line available to a much broader market. Geographically, DRONCO's strong product portfolio will be distributed to global markets, with a focus on further expansion in Europe and North America. To support North American sales growth, logistics and distribution of DRONCO products will be added at Jason Finishing Group's Richmond, Indiana facility by the end of 2015. In 2016, DRONCO will be expanded into emerging markets to meet increased demand for abrasives in developing and growing economies.
"DRONCO is an outstanding strategic fit for our organization and we are excited to welcome the company and its employees into the Jason family," said David Westgate, chief executive officer at Jason. "With DRONCO in our portfolio, we reinforce Jason Finishing Group's status as the leader in finishing. Our customers will benefit from access to DRONCO's line of quality products, while those of DRONCO will benefit from the availability of Jason Finishing Group's extensive line of brushes and polishing tools from brands they recognize and may already trust for their surface treatment and finishing needs."
"By leveraging the numerous inherent synergies between DRONCO and Jason Finishing Group brands, like Osborn, we expect to achieve considerable long-term growth that will benefit each company in our portfolio," said Dr. Florestan von Boxberg, President of Jason Finishing Group. "DRONCO has earned a privileged reputation as an innovative, well-run company that produces high-quality products. We are proud to add this organization to our portfolio and excited about the value this acquisition brings to our joint customers."
Jason intends to maintain DRONCO's Wunsiedel, Germany site as the primary manufacturing and R&D center for bonded products. In addition to its Wunsiedel site, DRONCO has three subsidiaries in UK, Sweden and France. Thus, Jason Finishing Group acquires a global abrasives company that is recognized for quality and product innovation. In fact, DRONCO recently introduced a next-generation line of cutting and grinding discs with a lifespan that is three times that of its counterparts. Through the acquisition of DRONCO, Jason Finishing Group expects there to be a sharing of technologies that will lead to the development of innovative new products for Osborn and other brands within the Jason Finishing Group portfolio.
About Dronco GmbH:
DRONCO is one of Europe's leading manufacturers of abrasives and sells its products in approximately 100 countries. The company's range of products, including cutting, grinding and abrasive discs, diamond cutting tools and ceramic abrasives, is recognized for outstanding quality among professional tradespeople and discerning DIY users alike. DRONCO was founded in 1962 and is headquartered in Wunsiedel, Germany, with subsidiaries in France, UK and Sweden. To learn more, visit www.dronco.com.
About Jason Industries, Inc.:
Jason Industries, Inc. is the parent company to a global family of manufacturing leaders in the seating, finishing, components and automotive acoustics markets, including Assembled Products (Buffalo Grove, Illinois), Janesville Acoustics (Southfield, Michigan), Metalex (Libertyville, Illinois), Milsco (Milwaukee, Wisconsin), Osborn (Burgwald, Germany and Richmond, Indiana) and Sealeze (Richmond, Virginia). All Jason companies utilize the Jason Business System, a collaborative manufacturing strategy applicable to a diverse group of companies that includes business principles and processes to ensure best-in-class results and collective strength. Headquartered in Milwaukee, Wisconsin, Jason employs more than 4,400 individuals in 14 countries. Shares in the company's stock are traded on NASDAQ, ticker symbol: JASN. To learn more, visit www.jasoninc.com.
Osborn International GmbH Ringstraße 10 D-35099Burgwald