TOKYO -- Japanese autoparts manufacturer Nifco will acquire German peer KTW to increase its dealings with European automakers.
The two companies are expected to reach an agreement on Tuesday. Under the deal, Nifco will likely buy all shares in KTW for 7 billion yen to 10 billion yen ($67.5 million to $96.5 million). The acquisition is seen taking place in May or June.
KTW generates some 8 billion yen in annual sales by making plastic parts, mainly for BMW. Considering it does not have any production sites outside Germany, Nifco's overseas sales network will be tapped to market its products to European automakers outside of Europe. Construction of KTW factories in North America and elsewhere will be considered as well.
Nifco is a major manufacturer of plastic fasteners used to secure automotive interior parts. The company expects sales of 180 billion yen for the year ended March 31, up 29% from the previous year. Nifco deals mainly with Japanese and South Korean automakers, with sales to European automakers accounting for only about 5% of the total.
Nifco acquired Germany's KTS, a major supplier to Volkswagen, last spring.