ERJ staff report (DS)
Weinheim, Germany -- Freudenberg Seals and Vibration Control Technology has signed a contract with the automotive supplier ElringKlinger AG, Dettingen/Erms, which paves the way for a takeover of Freudenberg's cylinder head and exhaust gasket business on January 1, 2011. Both parties have agreed not to disclose specific details of the purchase price. It will be within a range of 0.6 to 0.8 times expected revenue for 2011.
As a result, Freudenberg will no longer be active as an OEM for the automotive industry in this segment. Freudenberg currently manufactures these products with a workforce of 370 employees in three countries in Europe; in Eurasberg and Geretsried-Gelting (Germany), Chamboret and Nantiat (France) as well as Settimo (Italy).
Alongside the Freudenberg subsidiary Burgmann Automotive GmbH, Gelting, Germany, ElringKlinger will also take over a part of Freudenberg-Meillor S.A.S., Nantiat, France, as well as Oigra Meillor s.r.l., Turin, Italy.
In acquiring the static-metal-gaskets business from the Freudenberg Group, ElringKlinger intends to expand its international position in the area of cylinder-head gaskets and highly heat-resistant specialty gaskets for engines and exhaust systems. In the area of specialty gaskets, the overall portfolio will be extended to include several additional products, e.g. within the turbocharger and exhaust recirculation segment.
The Group had already announced its intention to take this step in July 2010, in order to focus its sealing technology activities on its globally-oriented core business. The independent aftermarket activities of Corteco will be continued and expanded.
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Press release from ElringKlinger
Press release from Freudenberg