Tag Archive | "deals"

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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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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MARATHON TO DISTRIBUTE WAI COMPONENTS

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MARATHON TO DISTRIBUTE WAI COMPONENTS


Independent distributor Marathon Warehouse Distribution has signed a deal with component manufacturer WAI Global to stock and deliver its range which includes starters, alternators and window regulators among other items.  

Marathon offers a  same-day service, which can reach around 85 percent of the UK’s population.

WAI customer stock orders will continue to be supplied through the company’s Bognor Regis warehouse on a next day delivery service, but with the implementation of the same day service, the plan is to bring WAI closer to the motor factor and ensure immediate access to ‘grey tail’ products.

Colin Fisher and Richard Welland

Richard Welland, WAI Global UK Managing Director, said: “There’s no denying the UK automotive aftermarket is changing at an alarming rate. In the past few years, we have worked to bring the WAI brand closer to motor factors and garages, meeting their demand for an almost instant parts supply.

Colin Fisher, Marathon Warehouse Distribution Sales and Marketing Director, said: “The ambition of WAI matches our own and we’re delighted to be stocking the widest range of WAI products and supplying the brand to motor factors on a frequent same day basis. We’re an independent national warehouse distributor and our logistics platform has to be able to offer motor factor customers a full range of high quality products both quickly and efficiently.”

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NGK BECOMES SHAREHOLDER OF TECALLIANCE

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NGK BECOMES SHAREHOLDER OF TECALLIANCE


Ignition giant NGK Spark Plug has become a shareholder of aftermarket data firm TecAlliance.

TecAlliance’s portfolio includes international vehicle and product data, repair and maintenance information, the TecDoc catalogue, data management and analytics as well as consultancy services n.

Damien Germès, Senior Vice President EMEA at NGK Spark Plug in Europe confirmed: “To become a shareholder of TecAlliance is a strategic decision and investment. We fully understand how essential it is for aftermarket distributors and workshops to have high-quality, instant data in a fast-changing market where digital solutions are becoming of vital importance. This investment is another demonstration of our commitment to continuously serving and supporting the independent aftermarket”.

“We are pleased to welcome as a new shareholder such an important player from the field of vehicle electronics”, emphasised Jürgen Buchert, Managing Director of TecAlliance. “This is another step towards our continuous goal to optimise and deepen the quality of our data and tailor-made solutions for a digital automotive aftermarket.”

 

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CONTINENTAL TO ENTER FILTRATION MARKET

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CONTINENTAL TO ENTER FILTRATION MARKET


Parts and technology group Continental have struck a deal with a filtration manufacturer to sell own brand filters across Europe.

The deal has been signed with Italy-based manufacturer UFI Filters and will officially launch at Automechanika Frankfurt in September of this year. Product will start shipping in January 2019.

Details of the product range have not yet been announced, but will  cover UFI’s all-makes programme of light vehicle fuel, oil, cabin and air filters. There is no word as yet on which, if any of the factor chains or buying groups will be stocking the product in the UK, and UFI has said that while the product ‘knows no borders’  a particular focus for Continental will be on the Germany, Austria, Switzerland, Benelux and Scandinavia markets.

“Our stated aim is to continue to expand our product portfolio for the automotive aftermarket under the renowned brand name Continental. To do this, we market only premium products that match our brand and that make sense for our customers,” said Peter Wagner, VP Aftermarket at Continental.

Giorgio Girondi, Chairman of UFI filters said:  “This agreement between two leading companies in the automotive aftermarket is a very important milestone in the history of UFI Filters. This strategic step by two premium brands shows that cooperation knows no geographical boundaries. That is crucial. We are really proud to see the UFI products in the renowned Continental branded box”.

UPDATE: UFI has confirmed that the agreement will cover markets across Germany, Austria, Switzerland, Benelux and Scandinavia only.

Georgio Girondi and Peter Wagner shake on UFI-Continental deal.

 

 

 

 

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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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DIGRAPH TO OPEN 16 NEW SITES

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DIGRAPH TO OPEN 16 NEW SITES


CV factor Digraph is set to open 16 new branches in the next six months as part of a growth strategy described as ‘aggressive’. This will be in addition to several acquisitions of similar businesses and expansion of existing branches.

The move follows significant investment in the company by Euro Car Parts as well as Sukhpal Singh Ahluwalia and James Rawson. The expansion could create and create 164 jobs.

The new outlets are in various locations across the UK, stretching from Glasgow to Crawley. At this point it is unconfirmed if the new locations will be from LKQ’s existing portfolio, newly acquired sites, or a mix of the two.

The strategy doesn’t seem to phase the management team.  Sukhpal Singh Ahluwalia commented: “Locations, stock and logistics are relatively straightforward – indeed we once opened 12 Euro Car Parts branches in a single day. Our challenge is to find the right people and partners to join us in delivering our vision of market-leading customer service … nationwide. We are building our new branches around the best team players”.

“We are shaking up the industry in other ways too, with major investment in stock ranges, accelerated delivery speeds and added-value programmes, as we continue to build the UK’s most powerful team.”

Branch expansions and upgrades are happening in Gloucester, Northampton, Nuneaton and Stoke. The Northwich branch is relocating to larger premises in Ellesmere Port which will greatly increase stock holding and give improved deliveries to the customer base.

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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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