US automotive supplier Cooper Standard has reached an agreement to divest its anti-vibration systems business to Continental AG, the two companies announced in separate statements 2 Nov.
The agreement includes a binding offer from Continental to purchase substantially all of Cooper Standard's anti-vibration business in France and its respective interest in the joint venture in India.
The two companies expect to sign a deal in the next few weeks following consultations with works council.
Financial details were not disclosed.
"Our strategic vision is to be a leading global manufacturer in all core product lines we produce," Jeffrey Edwards, chairman and CEO of Cooper Standard, said in a statement.
"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."
Conti execustive and head of ContiTech division Hans-Jürgen Duensing said the deal would enhance ContiTech’s AVS business and ability to serve the automotive industry.
Cooper Standard’s anti-vibration business operates five manufacturing facilities – including R&D capabilities in Canada, France, India and the US – and employs approximately 1,000 people.
Post-acquisition, the business will be integrated into Continental’s Vibration Control business unit, headed by Kai Frühauf.
“Cooper Standard enjoys excellent expertise in material and product design knowhow, predictive component analysis, system integration and vehicle testing,” said Frühauf.
Continental develops active and passive vibration-optimised mounting components and lightweight systems for engines, transmissions and other components.
The business unit is part of the ContiTech division and employs more than 2,600 people. The unit has production sites and engineering centres at 11 locations in Brazil, China, France, Germany, Mexico, Slovakia and the US.
Cooper Standard said its AVS business employs about 1,000 and, according to its 10-K filing, generated about $326.7 million (€372 million) in sales in 2017. Products include conventional and polyurethane strut mounts, spring seats and jounce bumpers; conventional and hydraulic bushings; conventional and hydraulic body and cradle mounts; mass dampers; and dual durometer (bi-compound) bushings, among others.
Cooper Standard operates in four product categories—rubber and plastic sealing, fuel and brake lines, fluid transfer hoses and anti-vibration systems.
Rubber & Plastics News, a US sister publication of PNE, contributed to this report.