Cerberus Capital Management on Tuesday filed the paperwork to sell a stake in Canadian auto supplier ABC Technologies Holdings Inc. through an initial public offering.
ABC began in 1974 as a family business that grew into one of Canada’s biggest auto suppliers. Cerberus bought ABC Group in 2016 and changed its name to ABC Technologies.
The number of common shares to be sold and the price per common share have yet to be determined, but ABC Technologies said it expects to initially offer shares at a price of $12 to $15.
ABC, headquartered in Toronto, said about 52.5 million common shares will be issued, valuing the company at between $630 million and $788 million. Everything is subject to change based on investor interest an uptake.
The company will be traded in Canadian currency on the Toronto Stock Exchange.
ABC provides thermoplastics for the global auto industry, with plants in North America, Spain, Poland, Brazil and China. It makes centre consoles and interior trim for vehicle interiors, and spoilers and bumpers for the exterior. It also makes ductwork for heating and cooling systems.
The supplier is focused on replacing parts that traditionally would have been made of heavier material. ABC makes products it calls “powertrain agnostic,” meaning a vast majority of its products fit internal combustion engines, but can be easily transferred to electric vehicles..
According to the ABC’s preliminary long-form prospectus, the company posted net earnings of US$65 million during the company’s 2019 fiscal year, which ended in June 2019. But, lost US$26.1 million during 2020 due mainly to the pandemic’s arrival during what would have been the supplier’s third quarter and lasted into the fourth and beyond.
ABC last appeared on the Automotive News Top 100 Global Suppliers list in 2017, when it placed No. 98 with US$948 million in sales in 2016.
According to the company website, ABC employs 6,000 people across 36 facilities.
