Automotive parts supplier Plastech Engineered Products (USA Dearborn, MI 48124; www.plastecheng.com) has made a USD 1 bn bid to buy its competitor Collins & Aikman (USA Troy, MI 48083; www.colaik.com) – see PIE 11, 2005, which filed for bankruptcy in May. A swift completion of the deal is being sought to ensure that C&A retains its business and the goodwill of its customers, and to prevent problems in worldwide supply of automotive parts should the company cease trading. Due diligence and the submission of a formal proposal are expected in the next month if C&A gives access to Plastech and its representatives.

C&A has annual sales of around USD 4 bn, about four times Plastech´s turnover. It is widely reported that Plastech will use some of its own cash to fund the purchase and that New York banker Goldman Sachs has been appointed by Plastech to seek additional financial backing.

C&A manufactures a wide range of automobile parts including instrument panels, centre consoles and upholstery, complementing Plastech´s range which includes mud flaps, door panels and battery trays. Plastech´s customers include DaimlerChrysler, Ford, General Motors, Toyota, Nissan and Honda.

If the deal is successfully completed it will lead to a single supplier providing parts used in 90% of cars and trucks produced in the US and employing up to 30,000 people.

In 2004, Plastech made two significant acquisitions. At the beginning of the year, LDM Technologies was bought for around USD 290m in a move that almost doubled the size of Plastech. Then, in August, it acquired the Chicago automotive components assembly facility of Visteon, to which it was previously supplying components.

No other companies are reported to have expressed an interest in acquiring the C&A business.