The STIHL Group is planning to acquire COSMOS Manufacturing Inc., a U.S.-based manufacturer of mufflers. COSMOS, a current STIHL development partner and major supplier of mufflers, is headquartered in South Chicago Heights, Illinois, USA and employs some 200 people in the development, production, and sale of muffler systems and stamped components for small and medium-sized engines.
"This acquisition will deepen our expertise in the development and manufacture of mufflers and other exhaust components," says Martin Schwarz, STIHL Executive Board Member for Manufacturing and Materials. "This represents a major step forward in achieving increasingly strict emission standards and also reinforces our supply chain resilience." STIHL has a high level of production depth of over 50 percent, safeguarding value creation at the company and cementing its technological leadership.
Company founder underscores excellent collaboration
Just like STIHL, COSMOS is also a family-owned business. The founder of the company, John Michelon, is withdrawing from the business due to his advancing years. "COSMOS and STIHL have maintained a successful partnership for decades," he said. "I am happy to have secured the future of the company through the takeover and am confident that COSMOS will be able to operate to its full development and manufacturing potential as a part of the STIHL family."
STIHL to maintain current COSMOS strategy
The transaction is set to take place as an asset deal, with STIHL founding a new company in the United States called CS COSMOS STIHL Manufacturing. The new enterprise will take over the employees and existing customers and suppliers and continue COSMOS' business seamlessly and without interruption. "We are building on our well-established partnerships with existing partners," explains Martin Schwarz. "COSMOS customers will continue to enjoy the outstanding development services and products they are accustomed to."
COSMOS Manufacturing Inc. produces some 9 million mufflers annually and supplies manufacturers of hand-operated power equipment, lawn mowers, and tractors. Products also include a range of stamped and deep-drawn parts, such as clutch drums and spiked bumpers. The company was founded in 1972 and offers a wealth of expertise in the areas of development, manufacturing, and industrialization. STIHL awarded COSMOS with its Supplier of the Year prize on two occasions, in 2009 and 2013.
The parties have agreed not to disclose the purchase price. The transaction remains subject to approval by the relevant antitrust authorities.