ANN ARBOR, MI — Affinia Group Inc. yesterday announced the sale of its subsidiary, Beck/Arnley Worldparts Corp., to Heritage Equity Group, Inc. Heritage is a privately held company funded entirely by private investors, and in part by Beck/Arnley management.
“We are extremely proud to see the great potential that Beck/Arnley will have under Heritage,” said Terry McCormack, president and CEO of Affinia Group. “After considerable deliberation, we determined that both Affinia and Beck/Arnley would benefit from this move. Affinia’s customers, investors and associates will be better served through focus on our primary lines, brakes, chassis and filtration, which we manufacture and market.”
McCormack went on to stress that the nature of Beck/Arnley’s business made it different from the rest of Affinia. “With the Wix, Raybestos and Spicer brands, we are manufacturers and marketers of vertical product lines. Beck/Arnley buys and sells a horizontal package of import parts that cuts across many product categories. It’s a fundamental difference, and it creates different needs that are better served separately.”
“We are simply delighted to be in control of our own destiny,” said Max Dull, formerly VP/GM of the subsidiary who will now be president and CEO of Beck/Arnley. “This truly will allow Beck/Arnley to be Beck/Arnley.”
Dull echoed McCormack’s comments, saying that being affiliated with any primarily vertically oriented company created issues for both. “Trying to juggle the needs and requirements of two very large manufacturing divisions with the needs of Beck/Arnley and its market segment approach was a challenge,” said Dull. “Operating separately will allow each company to focus on its strengths. The customers of both businesses will benefit.”
Manny Angues, who served as controller of Beck/Arnley and now will be vice president and CFO, stressed the stability of the new ownership, explaining that the financial state of the company is very sound. “As a private company we are not required to report our financials, but I am proud to say that our debt to equity ratio is extremely strong,” said Angues. “We are in a solid financial position that will enable us to invest in the business moving forward. Our plan is to grow the business by supplying replacement parts with the same form, fit, and function of the original parts. This is an absolute necessity to compete in the growing market for import replacement products.”
Both Dull and Angues stressed that they intend to keep the current strategic and operational plans in place. They indicated the company would maintain its master distribution center and headquarters in Smyrna, TN, as well as its network of six branch locations around the country.
For more information, visit: www.affiniagroup.com.
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