Auto parts maker ArvinMeritor has followed through on its promise to divest parts of its business and has agreed to sell its Purolator filter unit to The Bosch Group and Mann+Hummel.
The deal is expected to take force April 1, 2006 and will be operated as a 50/50 joint venture for the two German companies.
The acquisition covers all Purolator oil, air, fuel and cabin filters. At its site in Fayetteville, North Carolina, Purolator produces filters for both the OE and aftermarket sectors, and at its site in Salt Lake City, Utah, it maintains a small distribution centre. In Canada, the business is managed out of the same facility that handles ArvinMeritor’s Gabriel and Maremont businesses.
In 2005, Purolator recorded sales of $267 million U.S. The acquisition is subject to approval by the relevant authorities.
The divestiture follows an earlier announement by ArvinMeritor that it would be seeking to sell its Light Vehicle Aftermarket businesses piecemeal over the remainder of 2006.
“Expanding our filter business is an integral part of our growth strategy in the Automotive Aftermarket Division,” says Peter Tyroller, Bosch Board of Management member. “In acquiring the Purolator filter business, we are significantly improving our market position in the NAFTA region.”
“With Purolator, we are closing our strategic gap, as far as filtration facilities in North America are concerned. We have been extending our activities specifically in this region since 1997,” said Dr. Dieter Seipler, CEO of Mann+Hummel. “For Mann+Hummel, Purolator perfectly complements our business in North America in the OE sector and in the independent aftermarket.”
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