Nichirin has acquired ATCO Products, a portfolio company of Fidelis Holdings
ATCO Products
Founded in 1967 and based in Ferris, Texas, ATCO Products (ATCO) is a trusted supplier serving major heavy-duty truck original equipment manufacturers (OEMs) such as PACCAR, NAVISTAR and Volvo. The company specializes in manufacturing air conditioning fittings, tubing and hoses for medium- to heavy-duty commercial vehicles, including Class 4-8 trucks. With approximately 250 employees and over 90,000 square feet of its facility space, ATCO has established a long-standing reputation for delivering excellence in the industry. One of ATCO’s key strengths lies in its outstanding customer service, which includes the flexibility to handle urgent orders and the capability to design tailored prototype parts that meet specific client requirements.
The Deal
Nichirin, a Japanese leading manufacturer of automotive and motorcycle hoses, is enhancing its global positioning through its mid-term management plan “NICHIRIN New Sustainable Development Plan.” The company currently focuses on the light vehicles sector in North America. The acquisition of ATCO is highly complementary to Nichirin’s business portfolio, enabling an entry into the North American heavy-duty vehicles market on a full scale. Lincoln International served as the exclusive financial advisor to Nichirin, utilizing its extensive industry expertise in the automotive sector and cross-border transactions to facilitate the successful completion of the deal.
Our Perspective
Tetsuya Fujii, Lincoln International Managing Director and Head of Japan who led the transaction, commented, “As the global automotive industry is facing great uncertainties, Nichirin’s entry into the relatively stable U.S. heavy-duty truck sector through the acquisition of a supplier with manufacturing base in Texas is highly strategic.”
Nichirin
Established in 1914 and listed on the Tokyo Stock Exchange Standard Market (TSE: 5184), Nichirin is a specialized manufacturer of hoses and piping components for automobiles, motorcycles and residential equipment, holding nearly a 100% market share in motorcycle brake hoses in Japan. The company supports a diversified customer base worldwide, operating its production facilities and sales offices across Japan, China, India, Southeast Asia, Europe and North America.
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