THE industrial unit of Ayala Corp. (AC) has acquired a controlling stake in German auto services provider C-Con Group, as it looks to improve its end-to-end engineering, design, and manufacturing services.
In a statement issued Wednesday, AC Industrial Technology Holdings, Inc. said its subsidiary MT Technologies GmbH has signed a share purchase agreement to acquire 75.1% of C-Con Group, which provides design, development, engineering, manufacturing, series production, and process management services to German automotive original equipment manufacturers (OEMs).
Founded in 1991, C-Con currently has eight locations with more than 200 employees. It will be fully integrated into MT Technologies after the acquisition, which will be subject to certain conditions.
“The acquisition and integration of the C-Con Group into MT is in line with AC Industrials’ strategies — to own, develop, and bring to market potentially disruptive technologies aligned with worldwide megatrends, and to deepen our presence in the global automotive space,” AC Industrials President and Chief Executive Officer Arthur R. Tan said in a statement.
AC Industrials said C-Con’s services will complement and strengthen MT’s competencies in modelling, tooling, and parts manufacturing, enhancing the firm’s standing as an integrated supplier and partner to automakers throughout the entire value chain.
“In addition, C-Con holds proprietary expertise in the production of parts made of carbon fiber reinforced polymer (CFRP) — a versatile material which provides high strength, light weight, and aesthetic benefits in several applications, including automotive, aerospace, and industrials,” the company said.
MT Technologies was folded into AC Industrials in 2017. The Bavaria-based firm has 150 years of experience in the automotive industry as a direct provider of design and manufacturing services to automotive OEMs and their immediate suppliers.
The company has two production plants in Ingolstadt and Kinding.
Established in 2016, AC Industrials has been steadily building up its portfolio through acquisitions. The group through Integrated Micro-Electronics, Inc. completed a deal to purchase 80% of United Kingdom-based STI Enterprises Ltd. in 2017, as well as a 76% stake in display solutions provider VIA Optronics.
Its unit AC Automotives has also recently acquired the distributorship for Kia Motors, in addition to its other dealerships for Honda Cars Philippines, Inc., Isuzu Philippines, Inc., Volkswagen, China’s Maxus vehicles, and KTM motorcycles.
Earnings of AC Industrials dropped 53% to P578 million in 2018, as it endured start-up losses for new acquisitions in addition to the weaker performance of its auto businesses. — Arra B. Francia