November 2, 2018 16:15 CET
Continental reached an agreement to acquire Cooper-Standard Automotive’s anti-vibration systems business for $265.5 million.
The business unit operates five manufacturing plants in Canada, France, India and the U.S., and employs approximately 1,000 workers.
The agreement announced Friday also includes a binding offer for substantially all of Cooper-Standard’s anti-vibration business in France and its joint venture in India, Continental said in a statement</strong>.
Anti-vibration components include engine and transmission mounts, rubber bushings used in suspension components, such as control arms, and the mounts that are used in subframes.
“This acquisition is enhancing our vibration control business and our ability to serve the automotive industry on a global basis,” Hans-Juergen Duensing, member of Continental’s executive board, said in the release. “Weight reduction will drive future mobility, because less weight results in less fuel consumption and in fewer CO2 emissions.”
The business will be integrated into Continental’s ContiTech division, which employs 2,600 at sites in Brazil, China, France, Mexico, Slovakia and the U.S.
Cooper-Standard divested the business because it’s not a core operating unit, CEO Jeffrey Edwards said.
“Our strategic vision is to be a leading global manufacturer in all core product lines we produce,” Edwards said. “While we have extensive automotive anti-vibration systems business in North America, we determined that the best course of action is to divest this product line to a company that will enable the critical focus necessary to expand the business globally.”
Cooper-Standard’s business units include sealing systems and fuel and brake lines.
The acquisition is subject to clearance from antitrust authorities in several countries and the company expects to receive those approvals in the first half of 2019.
Goldman Sachs served as the financial adviser to Cooper-Standard on the deal.
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