Waiblingen, 12/6/2022 | Company press release
The STIHL Group is planning to acquire COSMOS Manufacturing Inc., a US-based manufacturer of mufflers. Up to now COSMOS has been active as a development partner for STIHL and is a major supplier of mufflers. The company is headquartered in South Chicago Heights, Illinois, USA and employs around 200 people in the development, production, and sale of muffler systems and stamped metal components for small and medium-sized engines.
“This acquisition will deepen our expertise in the development and manufacture of mufflers and other exhaust components,” said Martin Schwarz, STIHL Executive Board Member for Manufacturing and Materials. “That is an important step for meeting increasingly strict emissions standards. It also strengthens the resilience of our supply chains.” STIHL has above-average vertical integration of over 50 percent. This unique characteristic secures added value at STIHL and underpins the company’s technological leadership.
Like STIHL, COSMOS is a family-owned business. The founder of the company, John Michelon, is withdrawing from the business for age-related reasons. “COSMOS and STIHL have maintained a successful partnership for decades,” he said. “I am happy to have secured the future of the company through this takeover and am confident that COSMOS will be able to operate to its full development and manufacturing potential as part of the STIHL family.”
The transaction is taking place as part of an asset deal. At the same time, STIHL is setting up a new company in the USA with the name “CS COSMOS STIHL Manufacturing”; employees as well as existing customers and suppliers will be taken over by this new company, which will reliably continue business without interruption. “We are building on our excellent collaboration with existing partners,” explained Martin Schwarz. “Established COSMOS customers will continue to enjoy the outstanding development services and products they are accustomed to.”
COSMOS Manufacturing Inc. produces around 9 million mufflers every year, supplying to businesses including manufacturers of hand-guided power tools, lawn mowers, and tractors. The product portfolio also includes a range of stamped and deep-drawn parts, such as clutch drums and claw stops. The company was founded in 1972 and offers a wealth of expertise in the areas of development, manufacturing and industrialization. STIHL has already awarded COSMOS a 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 anti-trust authorities.