Textron Inc. announced it is reviewing strategic alternatives for its Kautex business unit, which produces fuel systems and other functional components. Textron said it plans to consider a range of options, including a sale, tax-free spin-off or other transaction. Kautex operates more than 30 plants in 14 countries and generated more than $2.3 billion in revenue in 2018.
Kautex, headquartered in Bonn, Germany, is a leading developer and manufacturer of blow-molded plastic fuel systems and advanced fuel systems for cars and light trucks, including pressurized fuel tanks for hybrid applications. The unit also develops and manufactures camera/sensor cleaning solutions for automobiles, selective catalytic reduction systems used to reduce emissions from diesel engines and also produces cast iron engine camshafts, crankshafts and other engine components.
“Kautex is a leading Tier 1 supplier to global OEMs. It has a long history of product innovation, world-class operations and strong financial performance,” said Scott C. Donnelly, Textron chairman and CEO. “We are exploring strategic alternatives to see how we can position Kautex to best serve its customers for ongoing success while simultaneously unlocking potential value for our shareholders.”
Textron has retained Goldman Sachs & Co. LLC as financial adviser to assist in its review.