Windsor-based supplier Valiant sold to Chinese group

A Chinese consortium in Shanghai has bought the Valiant Group of Windsor, Ont., a global supplier of tooling and equipment for the vehicle manufacturing process.

The purchase will enable Valiant to expand into new global markets, company officials said.

Solcz Group Inc. said Thursday that it had signed a share purchase agreement to sell its Valiant TMS Group of Companies to the Chinese consortium. 

Neither party disclosed the value of the deal.

The transaction is scheduled to close in late 2016, subject to regulatory filing. The identity of the buyer is being held confidential until closing.

The Valiant group of companies has 27 facilities in 15 countries. It provides automated production systems and specialized tooling serving the automotive, aerospace and heavy industry sectors.

Specific to the auto industry, Valiant provides equipment in body-in-white welding and assembly systems, powertrain assembly systems, plastic injection and composite tooling, final vehicle assembly systems and more.

The Solcz family had long been considering expansion in China.

“Our vision as a family and vision as a management team has always been to become a global company. We’ve always had aspirations to be a true global supplier,” Solcz Group Chairman Marty Solcz told Automotive News Canada. “But when you get to a certain size, how do you leap into that next level? 

“About seven years ago, we as a family recognized we needed a succession plan to ensure our vision could be achieved,” he said. 

That’s when the Solcz Group hired a professional management team to run the day-to-day business of Valiant while family members took on more responsibility in the board room, planning the company’s future.

“Things really started to expand in North America and Europe and we became global players with the automotive companies,” Solcz said. 

Valiant was named a GM Supplier of the Year by General Motors during its 24th annual Supplier of the Year Awards ceremony held in March. It’s also been lauded by Ford Motor Co. and works with Fiat Chrysler Automobiles, Volvo, Volkswagen, Daimler and suppliers Magna and Linamar.

“A couple years ago, we decided, ‘let’s get a stronghold in China,’” Solcz said.

Valiant developed Valiant TMS Technology in Shanghai, but it wasn’t easy. 

“It was a difficult thing. The market is so extensive, it was very difficult to do it as a startup,” Solcz said. “So we started looking for other partners that could work with us. We needed somebody who would help us grow in this market and yet not get too disruptive in our other locations. We finally found the right group.”

Solcz said the deal is “not a takeover of competitive rivals, at all.” The two groups don’t directly compete or operate in the same geographical or business circles, he said.

Some companies in the consortium have a foothold in the automotive industry when it comes to body-in-white technology. There’s also a vision of the consortium to develop in the powertrain applications segment, “which we’re very strong on in North America,” Solcz said.

Flavio Volpe, head of the Canadian Auto Parts Manufacturers’ Association, said the deal has its advantages for the Chinese, too.

“China is the world's largest producer of automobiles by far and is expanding its reach, including into Windsor,” Volpe said. “Valiant is a strategic acquisition.”

Valiant was founded in 1959 and is based in Windsor, Ont. It will continue to operate under the same management team, the news release said.