Commercial Vehicle Group Buys ATV Trim Maker

January 2013 Powersport News

By Evan Weese, web coordinator, Business First

Commercial Vehicle Group Inc. has acquired the assets of Daltek LLC, a maker of interior and exterior films, paints and other finishes, for $13.2 million, as it looks to continue diversifying its product mix.

Daltek operates two plants and employs 42 workers in Dalton, GA, primarily serving the all-terrain and utility-vehicle markets for Honda, John Deere, Yamaha and Bemis.

"This acquisition complements our existing exterior and interior trim products and fits our long-term strategic plan for growth and diversification outside of the Class 8 market," Commercial Vehicle Group CEO Mervin Dunn said in a press release.

The deal is expected to bring CVG revenue of more than $13 million with operating income of $3 million, increasing share earnings by an estimated 7 cents in 2013.

Spokesman John Hyre said the company's business once was fully rooted in heavy-duty Class 8 vehicles, including tractor trailers, but it now gets less than 50 percent of its business from that segment. The diversification, he said, makes Commercial Vehicle's stock less susceptible to cyclical pressures.

New Albany-based CVG (NASDAQ:CVGI) in November disclosed the purchase of Indian seat-maker Vijayjyot for $13.7 million, a deal Hyre called a geographic as well as operational diversification.

The company employs about 130 workers in the Columbus area with its headquarters and research-and-development facility in New Albany.

  • Like what you read?

    Want to know when we have important news, updates or interviews?

  • Join our newsletter today!

    Sign Up
You Might Also Be Interested In...

Send to your friends!

Already a subscriber? Please check your email for the latest full issue link.