STIHL TO ACQUIRE MANUFACTURER

The STIHL Group has announced they are 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," said 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." 

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 say the transaction is set to take place as an asset deal, with the founding of 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. 

Cosmos Manufacturing Inc. produces 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 parties have agreed not to disclose the purchase price. The transaction remains subject to approval by the relevant antitrust authorities.