Novi, Michigan – Continental AG's Vibration Control business, which produces anti-vibration parts like engine mounts for the automotive industry, has a strong global presence, with 10 manufacturing plants mostly concentrated in Europe. But it needed to enhance its presence in North America.
Cooper Standard Automotive Inc.'s Anti-Vibration Systems business makes similar parts, but its strength is in the US and Canada, with one site in France and two in India through a joint venture.
So, when the chance for Conti to acquire the Cooper Standard unit came along, it capitalised. Cooper Standard agreed to sell its AVS unit to the German group for $265.5 million, subject to closing conditions and antitrust approvals.
Continental projects the deal to close sometime in the first half of 2019.
"We are now a real global player in all relevant markets for the automotive business," said Kai Fruehauf, head of Continental's Vibration Control business unit. "We can really serve customers today out of one hand."
If the deal is approved, the business will operate 15 facilities – five in Germany; two in France; one in Slovakia; one in Mexico; one in Brazil; one in China; one in Auburn, Ind.; one in Mitchell, Ontario; and will hold a 50% stake in Sujan Cooper, a JV in India that operates sites in Pune and Chennai.