PKC acquires AEES

AEES is a North American wiring harness manufacturers for heavy and medium duty trucks and it also has a significant position in light vehicle wiring harnesses. In addition, AEES provides components and wires to other contract manufacturers. AEES’ largest customer accounts within the truck industry are e.g. Daimler Trucks North America, Navistar and PACCAR. Major customer accounts relating to the light vehicle industry include i.a. Continental, Ford, General Motors, Harley Davidson and Lear. In 2010, AEES generated net sales of EUR 454.0 million. AEES has operations in USA, Mexico, Brazil and Ireland and had about 13,800 employees at the end of June 2011. Harri Suutari, President and CEO of PKC, comments: ”We are excited about this unique opportunity to acquire AEES, as it offers an ideal strategic fit for our business through a highly complementary geographic footprint and customer base. By combining AEES, a major North American truck wiring harness manufacturer, with PKC, one of the leading wiring harness manufacturers for trucks in Europe and South America, we create a leading global truck wiring harness supplier. Following completion of the transaction, the combined entity supplies wiring harnesses to the six leading Western truck groups. With this acquisition, we also enter the automotive industry in North America and Brazil. Currently, PKC manufactures wiring harnesses also to light vehicles, buses, recreational vehicles as well as construction, forestry and agricultural equipment in Europe and South America, and has a small percentage of sales in North America. The acquisition hereby provides access to new customer segments and also offers PKC an opportunity to expand its product and service offering, e.g. via manufacturing of components and wires. The combined entity will employ about 22,000 employees." Rob Joubran, Partner at Platinum Equity, comments: "Following two years of complex international restructuring AEES is now thriving as a profitable, growing business. Combining with PKC is a logical and exciting next step,” said Rob Joubran, partner at Platinum Equity. “We are proud of the role Platinum Equity has played in establishing AEES as a leader in North America and look forward to continuing on with the organization as a shareholder." Closing of the acquisition and effects on PKC The closing of the acquisition is subject to fulfilment of customary terms including competition authority approvals. The intention of the parties is to close the acquisition by 1 October 2011 and AEES will be consolidated to PKC as of closing. PKC will publish a separate release regarding the closing of the transaction. The acquisition is not expected to have a significant effect on PKC’s 2011 result.