ITT Corp. has signed an agreement to acquire Wolverine Automotive Holdings Inc., the parent company of Wolverine Advanced Materials LLC (Wolverine), which develops and manufactures customized technologies for automotive braking systems and specialized sealing solutions for harsh operating environments across a range of industries. Founded in 1934, Wolverine is a globally diversified manufacturer with a strong reputation for material science-based solutions and meaningful aftermarket content representing approximately 40 percent of revenue.
The acquisition of Wolverine, which will vertically integrate with an existing automotive supplier, also will give ITT the opportunity to leverage its automotive and industrial channels to accelerate growth in seals for pumping applications and to use Wolverine’s elastomeric technologies to develop new aerospace and industrial applications.
“With the acquisition of Wolverine, ITT will be able to offer its strategic OEM, brake manufacturer and aftermarket customers an expanded portfolio of highly engineered automotive components including key braking and sealing technologies,” said Denise Ramos, CEO and president. “With leading market positions and longstanding brands, ITT and Wolverine will both have new opportunities to strengthen our capabilities and create long-term value through an expanded presence in key geographies and end markets.”
“While this transaction will broaden ITT’s offering to customers, it also will give both companies new opportunities to strengthen design, testing and performance capabilities,” said Luca Savi, president of ITT’s Motion Technologies business. “This acquisition will also allow Wolverine to leverage ITT’s manufacturing capabilities, operational systems, materials science expertise and legacy of quality and performance to enhance the solutions and service it provides customers.”
Grant Beard, Wolverine chairman and CEO, added, “Wolverine is very excited about joining ITT. The strategic fit and the cultural alignment between the two organizations is very strong. This transaction will allow us to accelerate our growth and better serve our customers as well as provide enhanced opportunities for our employees.”
The transaction purchase price of approximately $300 million, free of debt, will be funded from the company’s cash and revolving credit facility. The final purchase price is subject to a customary net working capital adjustment. The transaction is expected to close in the fourth quarter of 2015, subject to customary closing conditions, including appropriate regulatory approvals.
Wolverine, which is headquartered in Dearborn, Michigan, anticipates full year 2015 revenues of approximately $180 million (including sales to ITT), with adjusted EBITDA of approximately $38 million, and is expected to be accretive to ITT earnings in the first full year after closing.
