Jason Industries buys European manufacturer of abrasives

Freeman Staff

June 1, 2015

MILWAUKEE — Jason Industries, Inc. announced Monday that it has acquired Dronco GmbH, a European manufacturer of abrasives. The company was purchased for approximately €32 million in cash and €10 million of assumed liabilities, according to the announcement.

Going forward, Dronco will be integrated into Jason’s finishing segment. Dronco, based in Germany, has approximately €40 million in revenue.

By acquiring Dronco, Milwaukee-based Jason enters a targeted faster growing $6 billion adjacent abrasives market segment.

“Dronco has earned a privileged reputation as an innovative technology leader that produces high-quality products. We believe that Dronco is an outstanding strategic fit and we are excited to welcome the company to the Jason family” said CEO David Westgate in a statement. “Through this acquisition we simultaneously enter a market that is undergoing a steady rise in worldwide demand, further globalize our finishing business, and are presented with substantial opportunities for future growth. We anticipate that the DRONCO transaction will deliver shareholder value in both the near- and long-term as we achieve growth, cost and sales synergies.”