Thermostat Brands Combine to Form New Thermal Management Company for the EV Market
Three thermostat brands combine to form a new thermal management parts provider serving leading automakers.
Three thermostat brands and the thermal management solutions division of electrical products manufacturer Arlington Industries have combined to form one company focused on manufacturing thermal management parts for leading carmakers.
The newly formed Thermal Management Solutions Group will provide thermal management products and manufacturing services to original equipment manufacturers and tier 1 and tier 2 suppliers as they transition engine development from internal combustion engines to hybrid, battery and fuel-cell vehicles. According to its website, the firm is already a tier 1 supplier to Ford, Jaguar Land Rover, BMW, Daimler and Renault Nissan.
Image courtesy of Thermal Management Solutions Group
The company is backed by New York City-based private equity firm Cartesian Capital Group, which has holdings in more than 70 companies spanning a mix of industries. The firm acquired England-based Arlington Industries Group in 2013, according to Mergr's M&A activity database, marking its first transaction in the manufacturing sector.
Arlington Industries went on to acquire thermostat providers Wahler in 2019, U.K.-based Magal Engineering in 2017 and France-based Dauphinoise Thomson in 2003. In announcing the Wahler acquisition, Arlington Industries said it would create a new division under its automotive business: The Arlington Thermal Management unit would provide thermal management technology for combustion, hybrid and electric vehicles across the three firms’ factories in Germany, Brazil, China, the U.S., the U.K. and France.
Now, according to an announcement made earlier this year, Wahler, Magal and Dauphinoise Thomson are combining to form Thermal Management Solutions Group. The company says it plans to generate more than £150 million (or about $212.5 million USD) in annual revenues and hire over 800 employees across its six global sites.
Thermal Management Solutions offers wax elements, oil regulators, a range of thermostats and other products, as well as design, simulation, prototyping, testing and manufacturing services. The announcement said it plans to grow its product lineup and expand its customer base in the automotive independent aftermarket, heating and sanitary markets.
In a statement, Thermal Management Solutions CEO Mark Franckel said the new company “delivers exceptional global market position and depth to provide both existing and new customers and suppliers with numerous advantages in navigating these exciting times in the automotive sector.”