The Week in Review (April 2-5, 2007)
By Amy Antenora Editor The Week in Review offers a snapshot of the most read stories of the week as seen on aftermarketNews. To access the complete stories, simply click on the highlighted links. If you missed reading one of our daily news emails, click on any of the dates listed at the bottom of
United Components Reports Results of Operations for Fourth Quarter 2006
United Components, Inc. (UCI) has announced results for the fourth quarter ended Dec. 31, 2006. Revenue of $222.7 million increased $31.8 million compared to the year-ago quarter. The quarter included $20.5 million in sales by water pump manufacturer ASC Industries, which was acquired by UCI during the second quarter. On a comparable basis (excluding ASC sales), the company reported revenue increases in the retail and heavy duty channels, a decline in the OEM channel, with sales flat in the traditional and original equipment service channels.
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.
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?