Methode acquires Nypro Monterrey

Methode Electronics Inc. (Chicago) has acquired certain assets and liabilities of Nypro's Monterrey, Mexico injection molding and painting business, Nypro Monterrey S. de R.L. Methode and Nypro did not supply the specific terms of agreement, but Methode said acquiring Nypro's assets versus building up a greenfield site will save it around $8.0 million.

The acquisition includes 52 injection molding machines, three paint lines, and several pad print machines. Methode will continue production of injection-molded components for the operation's current customers, whose contracts will transfer to Methode along with the assets. Additionally, 228 Nypro employees will transfer to Methode.

Methode anticipates investing approximately $7.5 million in additional capital to complete the vertical-integration process. Methode President and CEO Donald W. Duda said his company had experienced significant quality and delivery issues with suppliers for what he called an intricate paint process for the production of automotive center consoles. "Although we put in place a number of corrective actions and process improvements during the last several quarters," Duda said, "we believe the vertical integration of a portion of these processes will be the best solution to provide our customers with better and more consistent quality." The company's automotive center console offerings include its TouchSensor field-effect technology, which is featured in the 2011 Ford Edge ICS.

Methode has manufacturing, design, and testing facilities in China, Germany, India, Lebanon, Malta, Mexico, the Philippines, Singapore, Switzerland, the U.K., and the U.S., serving its designated markets of Automotive, Interconnect, Power Products, and Other. Nypro operates 44 locations in 15 countries, employing more than 17,000. Sales for the most recent fiscal year were approximately $1.1 billion. Its remaining Mexico sites are in Juarez, Guadalajara, and Baja.

Methode's existing Monterrey manufacturing campus covers 75,000 sq ft. Its capabilities include injection molding, insert molding, PCB assembly, ultrasonic welding, assembly, and testing, as well as product and tool design, tool building, rapid prototyping and laboratory services. A Sony Green Partner site, it operates under ISO9001, TS16949, ISO14001, and CTPAT certification. The company's other molding sites are in Rolling Meadows, IL (70,000 sq ft); Malta (300,000 sq ft); and Shanghai (100,000 sq ft).