Ford Sells Unit to Private-Equity Firm
Ford Motor Co. said Friday it would sell its service-contracts subsidiary to a Connecticut private-equity fund for an undisclosed amount. Trident IV LP, managed by Stone Point Capital LLC of Greenwich, CT, is expected to complete its purchase of Automotive Protection Corp. by June, subject to regulatory approvals and other conditions, Ford said. The sale is a result of Ford’s review of strategic options for the service-contracts business announced in October, Ford said.
The Top 10 News Stories of 2006
For the third year in a row, the editorial staffs of aftermarketNews and Counterman magazine take a look at the events that have had the most impact on the automotive aftermarket in the past year.
United Components Completes Sale of Its Flexible Lamps Unit
United Components, Inc. (UCI) has completed the sale of its Flexible Lamps business unit. The sale price for the transaction was approximately $39 million, subject to post-closing adjustments. The sale of Flexible Lamps, a U.K. manufacturer of lighting systems for commercial vehicles, follows UCI’s divestitures earlier this year of the company’s Neapco and Pioneer business units. These divestitures further UCI’s "Centers of Excellence" strategy, allowing the company now to devote full focus and attention to its core automotive aftermarket businesses: Airtex Products (fuel systems), ASC Industries (cooling systems), Champion Laboratories (filtration) and Wells Manufacturing (engine management).
United Components Reports Second Quarter Revenue of $245.8 Million
EVANSVILLE, IN — United Components, Inc. (UCI) has announced results for the second quarter ended June 30. Revenue of $245.8 million increased $13.8 million compared to the year-ago quarter, with small increases in the original equipment sales, original equipment service and heavy-duty channels, and declines in the retail and traditional channels. The quarter also included
United Components to Acquire ASC Industries
United Components, Inc. (UCI) and ASC Industries, Inc. have entered into a definitive agreement under which United Components will acquire the capital stock of water pump manufacturer ASC. The transaction values ASC at $154.7 million, including assumption of certain debt, and also calls for UCI to pay ASC stockholders an additional $4 million in purchase price following the acquisition based upon the achievement of certain operational objectives.
JAAI Acquires Certain Assets of Coolstar
A subsidiary of Jordan Automotive Aftermarket Inc. (JAAI), headquartered in Deerfield, IL, has acquired certain assets of A/C product maker Coolstar Inc. of Dallas, TX. With this acquisition, the Coolstar product lines of automotive, heavy truck, off-road, agricultural, aircraft and military air conditioning evaporators and hose assemblies will be offered under JAAI’s existing APCOAir brand of new and remanufactured compressors, hose assemblies, accumulators, receiver-driers, thermal expansion valves and fittings. The Coolstar line of evaporators and hose assemblies will be available under the APCOAir brand in October.
Raytech Announces First Quarter Results
Raytech Corp., a manufacturer of wet and dry clutch, power transmission and brake systems, announced a net income of $1.6 million for its first quarter of 2005, which ended on April 3. The net income amounted to 4 cents per basic and diluted share compared to a net income of $1.4 million or 3 cents per basic and diluted share for the same period in the prior year. The company recorded sales for the first quarter of $63.4 million compared to $56.6 million in the same period in the prior year, an increase of 11.9 percent.
MACS 25th Anniversary Convention Gets Support from Record Number of Sponsors
“NOW IS THE TIME!” — the 25th Anniversary Convention and Trade Show of the Mobile Air Conditioning Society (MACS) Worldwide is getting support from a record number of corporate sponsors. Forty sponsors have signed up for the show, which will take place February 1-3, 2005 at the Las Vegas Hilton.
American Products Co. to be Featured Tonight on New TLC Show Overhaulin’
American Products Company (APC), a leading automotive aftermarket manufacturer of performance and accessory products, will be featured tonight, Tuesday, May 25, on an episode of the new TLC cable channel series “Overhaulin’.” Hosted by legendary fabricator Chip Foose, the show dupes unsuspecting vehicle owners by surreptitiously removing their vehicles and tricking them out without their knowledge. The vehicle is then returned to its owner during a surprise “reveal” in a completely modified, tricked, tuned and transformed configuration.
Who’s Buying Whom?
Who owns the suppliers of today? New owners include leveraged buyout firms, putting a new spin on the old consolidation trend. In the wake of Dana’s announcement to sell off its aftermarket businesses comes the speculation of who will buy it. Water cooler conversations in the office haven’t exactly been at a fevered pitch. That’s a dramatic change from just a few short years ago when SPX was trying to make a hostile purchase of Echlin (which ultimately ended up in the hands of Dana), or when Federal-Mogul was buying up companies as part of former CEO Dick Snell’s major consolidation plan. Those were the good old days of major aftermarket acquisitions. Now, we’re left to ponder the fate of the Dana Automotive Aftermarket Group. The big question is: Who among the current base of manufacturers is a candidate to make such a large acquisition?