Milwaukee-based Jason Industries Inc. has acquired Pittsburgh-based Schaffner Manufacturing Co. Inc. for $11 million in cash.
Jason is the parent company of several manufacturers in the finishing, components, seating and automotive acoustics sectors. Among them is Milwaukee-based Milsco Manufacturing, which makes motorcycle, lawnmower and construction seating. Its 2018 revenue was $612.9 million, and it reported a 2018 net loss of $19.3 million. Jason has more than 3,600 employees in 13 countries.
Schaffner makes flap wheels, buffing wheels and buffing compounds for specialized applications. Its annual revenue is about $20 million. It has four manufacturing plants in Pennsylvania, Michigan and Mississippi.
Jason expects the acquisition to enhance its polishing business. Schaffner will be integrated with its Osborn business, which is based in Richmond, Indiana and Burgwald, Germany. Osborn makes brushes, polishing buffs and compounds, abrasives and roller technology for surface preparation and finishing, cleaning and containment, and material and structural positioning.
“The acquisition of Schaffner is consistent with our strategy to grow our Industrial business and provides a natural extension of the company’s current product offerings, enhancing the opportunity to serve our customers,” said Brian Kobylinski, chief executive officer of Jason. “Schaffner has a long history as a market leader and is a strong strategic fit with Osborn. We expect this combination to drive value for our customers, employees and shareholders as we execute our integration plan. We are pleased to welcome the Schaffner employees to Jason.”
Jason plans to provide more detail on the transaction in its May 2 earnings call.