Auto Service World
News   February 12, 2003   by Auto Service World

Hastings’ Canadian Unit to Acquire Canadian Engine Parts Distributor


Hastings, Inc. will expand its Canadian presence with the acquisition of Toronto, Ont., based engine parts distributor Ertel Manufacturing Corp.
Hastings Manufacturing Co. announced its intention to purchase the company today with the signing of a definitive agreement. Ertel Manufacturing Corp. of Canada, Ltd., is a leading distributor of internal engine components throughout Canada.
Hastings, based in Michigan, is a piston ring manufacturer and engine-products specialist. The company says the acquisition will allow its Barrie, Ontario-based Hastings Inc. unit to increase market share and significantly expand its Canadian presence.
On completion of the transaction, the company will sell a full range of internal engine components, including piston rings, pistons, gaskets, bearings, camshafts and other parts. The combined company will be headed by Robert W. Weatherston, president of Hastings Inc.
Hastings said the transaction, which remains subject to certain contingencies, is expected to close in mid-March. Terms were not disclosed.
Privately held Ertel Manufacturing, which posted sales of $16.7 million (U.S.) in 2002, distributes a full line of internal engine parts through 13 distribution centres in Canada. Ertel Manufacturing distributes a number of high-quality brands, including its own Engine Parts One brand, to professional engine rebuilders, parts warehouses, specialty retailers and original equipment manufacturers.
Hastings said the transaction is another step in its effort to become a global supplier of engine products. Known best as a manufacturer of high-quality piston rings, the 85-year-old company has significantly expanded the portfolio of engine components it sells in recent years through alliances.
Hastings initiated the growth strategy in 1999, when the Hastings Canada subsidiary created a Distribution, Administration and Sales (DAS) program to sell an entire complement of engine components, including piston rings, pistons, camshafts, valves and related parts to the Canadian aftermarket. Over the last four years, Hastings has formed alliances to market and distribute other engine components in North America and throughout the world. There was no word on how the acquisition would affect those pre-existing arrangements.
“The combination of Hastings and Ertel will provide a winning mix for customers, suppliers and employees of both companies,” said Mark R.S. Johnson, Hastings chairman and CEO. “Immediately, it will enable us to improve our service and expand the number of products we can offer to customers throughout Canada. Additionally, the transaction provides us opportunities to marry the complementary resources of both companies – particularly Hastings’ operational excellence and financial strength and Ertel’s market presence and distribution expertise.”
“Hastings’ growth in Canada as a full-line supplier of engine components makes this an attractive opportunity for Ertel’s customers, suppliers and employees,” said Jeffrey Scott, president of Ertel Manufacturing. “As a company, Hastings is committed to providing the investment and resources necessary to maximize the opportunities that exist in the engine niche of the Canadian aftermarket.”


Print this page

Related


Have your say:

Your email address will not be published. Required fields are marked *

*