Tag Archive | "acquisitions"

MAHLE TO ACQUIRE BEHR HELLA SERVICE

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MAHLE TO ACQUIRE BEHR HELLA SERVICE


Mahle’s Telford site

Filter manufacturer Mahle is to acquire Hella’s shares in Behr Hella Service, subject to the usual approvals. Terms of the deal have not been disclosed.

Currently, the operation is a joint venture between Mahle and Hella, but if the acquisition is successful Mahle intends to manage the spare parts business for thermal management products on its own.

There will be a transitional period, but it is planned that thermal products will be sold under the Mahle brand from the start of 2020.

Noting that Hella plans to concentrate on its core competences of lighting and electronics, coupled with workshop equipment, Dr Andreas Habeck, a BDM from Hella, said: “Together we will make the transition of the business activities as smooth as possible for our customers”.

Olaf Henning, Head of Aftermarket at Mahle said: “Efficient thermal management will play an increasingly important role in future – for all powertrain technologies. This move will allow us to give the best possible support in this promising area and ensure the successful operation of workshops.

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MOTORCARE MOTOR FACTORS ACQUIRED BY GROUPAUTO PARENT

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MOTORCARE MOTOR FACTORS ACQUIRED BY GROUPAUTO PARENT


Abergavenny-based Motorcare Motor Factors has been taken over by AAG, parent of the GroupAuto buying group.

The Motorcare chain comprises of six branches in Wales and the West of England. A branch in Brecon was opened as recently as April of this year.

Motorcare Discount (as it was originally known) was founded in 1984 in Abergavenny by Allen Bailey as an accessory and parts retail store, catering mainly for DIYers. In common with many parts shops it started doing an increasing amount of trade work, and it moved to an industrial unit in the mid-1990s.

Further branches followed from 2010 onwards, and the family-run chain picked up several GroupAuto member awards, including Member of the Year for the large factor, light vehicle category in 2017 (pictured)

Bob Ackroyd Managing Director GROUPAUTO, Justin Bailey and Simon Bailey of Motorcare Motor Factors.

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HELLA SELLS DISTRIBUTORS TO MEKONOMEN

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HELLA SELLS DISTRIBUTORS TO MEKONOMEN


Hella GmbH is selling its Danish and Polish parts distributors, FTZ Autodele & Verktoj  (FTZ) and Inter-Team s.p to the Swedish wholesaler, Mekonomen AB. A corresponding agreement has been signed by both companies. Terms of the deal amount to €395 million on a cash- and debt-free basis. In addition, a consideration equivalent to profits generated from November 30, 2017 to completion of the transaction will be paid to Hella. The sale is subject to approval  and is expected to close in Q3 2018. Financial advice was provided by Jefferies,

“With Mekonomen, a renowned wholesaler will take over our activities in Denmark and Poland, which will strategically develop the business,” explains Dr Werner Benade, Hella GmbH Managing Director. “We will systematically focus the Aftermarket segment on the independent spare parts business and innovative workshop equipment. As part of this, we are accelerating the interaction between the divisions and opening up digital business models.”

Pehr Oscarson, President and CEO of Mekonomen, adds: “Through the acquisition of FTZ and Inter-Team, we strengthen our position as a leading automotive spare-parts distributor in the Nordic region and take the step into Europe. The acquisition is in line with our strategy of playing a central role in the ongoing consolidation in Europe. These are two well-run companies that will continue to develop within the framework of existing corporate structures and brands as standalone companies in the Group.”

FTZ and Inter-Team employ a total of around 2,500 people. The two wholesalers achieved total sales of around €480 million in the 2016/2017 financial year. This corresponds to about seven percent of HELLA’s group consolidated sales.

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GKN MELROSE: POLITICAL REACTION TO HOSTILE TAKEOVER

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GKN MELROSE: POLITICAL REACTION TO HOSTILE TAKEOVER


Melrose Industries has narrowly won its hostile takeover bid for GKN.

Following a ten-week battle that saw a war of words from GKN management as well as a number of alternative deals on the table, including a proposal from car parts maker Dana, the shareholders decided by a margin of 52 percent to sell to Melrose.

Despite assurances from Melrose, fears that the new buyer will simply wage a campaign of asset stripping as the takeover promises £8bn to be returned to shareholders, which will inevitably involve selling off parts of the business. Apart from car parts, GKN produces aviation components and has a number of defence contracts, leading to some speculation in the mainstream press that the deal might be stopped on national security grounds.

Business Secretary Greg Clark sought assurances from Melrose, saying that no company was ‘immune’ from takeover. Critics were keen to point out that such ‘assurances’ mean little in law, as was demonstrated when Kraft went back on promises made to Cadbury in 2009.

However, Defence Secretary Gavin Williams appears not to share Clark’s lasse-fare opinion, as he is reported as having ‘serious concerns’ about such a deal.

Former Defence Secretary [and owner of Haymarket Group] Lord Heseltine is quoted in the FT as saying that ‘no other country of our sort’ would allow the deal to go through.

Labour’s Jeremy Corbyn has said that the deal ‘must be stopped’ and that it does not make any sense ‘to put the interests of city speculators over the national interest’.

On completion of the deal, the Head Office in Reddich is tipped to be the first part of the operation to close.

 

 

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DANA MAKES BID FOR GKN

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DANA MAKES BID FOR GKN


U.S-based car parts maker Dana has made a bid for embattled engineering giant GKN.

A report in the FT says that Dana will offer $6bn for the drivetrain division and will consider opening a secondary listing on the London stock exchange.

GKN’s drivetrain business combined with Dana’s existing contracts would give shareholders 47 percent of the world’s biggest drive system supplier with annual sales of $14bn according to the paper.

Jim Kamsickas, Chief Exec of Dana was clear that the combination of the two firm’s strengths in road vehicle engineering was undisputable. “It would be impossible to poke a hole in this industrially” he said.

The new bid is in addition to the hostile offer to shareholders from Melrose Industries, previously reported on. The board of GKN has rejected the bid, but shareholders are currently considering it.

However, the Melrose bit is neither popular with the management, nor some key clients. Tom Williams, CEO of Airbus has been quoted as saying that it would be ‘impossible’ to work with the engineering company under a short-term business model.

“The industry does not lend itself to shorter term financial investment which naturally reduces R&D, budgets and limits vital innovation,” he told the Reuters news agency.

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MESSE FRANKFURT ACQUIRES FOREST EXHIBITIONS

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MESSE FRANKFURT ACQUIRES FOREST EXHIBITIONS


Event organiser Messe Frankfurt has acquired Forest Exhibitions to create Messe Frankfurt UK. Terms of the deal have not been disclosed.

Sherwood was the licence holder for Automechanika Birmingham, while Messe Frankfurt is the parent company.

Simon Albert, Event Director of Automechanika Birmingham will take the role of Managing Director of the new UK subsidiary replacing Rob Sherwood.

A note from Olivia Brockwell, Operations Executive at Messe Frankfurt UK, to exhibitors at the show read: “There will be no operational, commercial or legal impact on your relationship with Forest Exhibitions”.

“The event team remain unchanged, and we are full steam ahead with this year’s event”.

The show organiser will remain in the same

 

 

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GKN FIGHTS ‘OPPORTUNISTIC’ HOSTILE TAKEOVER BID

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GKN FIGHTS ‘OPPORTUNISTIC’ HOSTILE TAKEOVER BID


UK engineering company GKN is under threat from a hostile takeover from investment house Melrose Industries.  

Melrose  has made an unsolicited offer to shareholders to  acquire the entire issued share capital of GKN for 1.49 new Melrose shares and 81 pence in cash per share.

Melrose is known for turning engineering companies around and under the strapline ‘buy, sell, improve, sell’ it attempts to add value to the brands it acquires before selling them on, in a similar vein to a private equity. It’s website states it “finances acquisitions using a low level of leverage, improves the businesses by a mixture of investment and changed management focus, sells them and returns the proceeds to shareholders”.

However, the management of GKN do not want to sell to Melrose. In a letter to shareholders GKN Chairman Mike Turner blasts the approach as ‘entirely opportunistic’ and ‘low price and high risk’ before barbing: “Your board believes that Melrose is more focused on financial engineering than real engineering”.

“GKN is six times the size of Melrose’s largest acquisition and your Board believes that Melrose’s management team lacks relevant experience at Board level in several critical areas” wrote Turner, adding that he doen’t believe that Melrose has the necessary relationships with VMs and aircraft makers to make a success of the business. “Cars and aircraft are researched, designed, produced and serviced over several decades – your Board believes that a short term, private equity-style strategy is not the right way to provide sustained shareholder value in our sectors” he said.

GKN said in an earlier letter to shareholders that it would sell non-core assets and return £2.5bn to shareholders in response to the offer. 

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TEN ANDREW PAGE BRANCHES CLOSE FOLLOWING ‘OPERATIONAL REVIEW’


Ten branches of Andrew Page have been closed.

Carlisle and Ellesmere port closed last week. Cardiff, Peterborough, Kettering, Shrewsbury,Chesterfield and three others closed on Monday. Calls we made to affected branches diverted to a nearby Euro Car Pa

Andrew Page Kettering closed on Monday.

rts.  Meanwhile, managers from other branches took part in conference call on Tuesday.  

In a written statement, a spokesman for ECP said: “We can confirm that we have closed 10 Andrew Page branches, following the completion of a recent business operational review by the Andrew Page Management team.  There are no plans to close any further Andrew Page branches. We are currently working with employees at affected branches to look for alternative options within the ECP or Andrew Page network, and working closely with customers of these affected branches.”

Andrew Page was bought by the parent company of rival Euro Car Parts in 2016 immediately after the former went into administration. Following a lengthy investigation by the  Competition and Markets Authority, nine depots were proscribed to be closed in the interest of not ‘significantly reducing competition’

Interestingly, none of the branches closed over the past week were on the CMA list. Liphook, Scunthourpe, Wakefield and York were on the list, but remain on the company’s depot finder.

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AAG ACQUIRE FAST PARTS WALES AND MORE

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AAG ACQUIRE FAST PARTS WALES AND MORE


Newport-based factor chain Fast Parts Wales and Peterborough-based Hereward Car and Truck Components are among a list of businesses acquired by Alliance Automotive Group in the last quarter.

Fast Parts Wales is a three branch light vehicle factor business based in South Wales with depots in Abercarn, Cwmbran & Tredegar.  The business was started around 25 years ago by the Travis family and the deal also includes the FastRads cooling system business based in Abercarn. The annual sales are around £9m and prior to the acquisition the business was a member of AAG’s GROUPAUTO buying group.

Hereward Car and Truck Components is another family run business, started in 1983 by the Saddington family. The two-branch factor was a member of the IFA buying group prior to the acquisition by AAG. Annual sales have been around £2.8m.

Single branch factors Macclesfield Motor Factors, DMFX (Darlington) and GD Components (Anglesey) have also been acquired by AAG.

There’s more info in the January issue of CAT Magazine.

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VALEO COMPLETES FTE AUTOMOTIVE ACQUISITION

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VALEO COMPLETES FTE AUTOMOTIVE ACQUISITION


Parts maker Valeo has completed the acquisition of actuator firm FTE Automotive, having received clearances from the European Commission and the Turkish Competition Authority. All FTE employees will transfer to Valeo.

Valeo says that the acquisition will allow it to expand its offering of active hydraulic actuators, a fast-growing market that has benefited from the rise of hybrid and electric vehicles.

Jacques Aschenbroich, Valeo’s Chairman and Chief Executive Officer, said: “With the acquisition of FTE Automotive, Valeo is positioning itself as the technological leader on the actuators market and thereby consolidating its CO2 emissions reduction strategy. This acquisition will help strengthen Valeo’s Powertrain Systems business. We are happy to welcome FTE’s 3,800 employees to the Valeo Group.”

In 2016, FTE Automotive generated sales of around 550 million euros. The company has more than 3,800 employees and a diversified manufacturing footprint in eight countries, including Germany, the Czech Republic, Slovakia, Mexico and China.

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