Lots of action in the aftermarket this week, starting off with the news that Affinia Group is considering a sale of its brake businesses. On Wednesday, Affinia confirmed that it has retained J.P. Morgan Securities LLC to advise the company in evaluating strategic alternatives for its brake related businesses, including the sale of all or a portion of them. The company markets brake products under the Raybestos and Aimco brands.
In other M&A news this week, TBC Corp. has acquired Midas in a $310 million transaction. The $11.50 per share offer price represents a 75 percent premium over Midas’ closing price of $6.58 on Aug. 11, 2011, when Midas announced it would conduct a strategic review process, and a 28 percent premium over the closing share price as of Monday, March 12, 2012. Just after the announcement of the sale, it was reported that several law firms are investigating the deal, looking into whether Midas shareholders are receiving adequate compensation for their shares in the buyout, whether the transaction undervalues Midas stock and whether Midas’ board attempted to obtain the highest share price for all shareholders prior to agreeing to the deal.
Another highly read news item on AMN this week was the announcement that longtime Federal-Mogul leader Jose Maria Alapont will retire as of March 31. Alapont has been president and CEO of Federal-Mogul since 2005. Rainer Jueckstock, currently senior vice president of the company’s powertrain energy business unit, has been elected to succeed Alapont as CEO, effective April 1.
TRW introduced its new all-makes premium disc brake pad program into the North American (NA) aftermarket this week. The TRW-branded program comprises more than 760 part numbers covering a vast majority of North American vehicles in operation. The TRW disc pad program is the first element of a full corner module product offering planned for the independent aftermarket. Other product programs will be introduced on a rolling basis, including a full line, all-makes linkage and suspension program later in 2012.
Last in our look back at the week’s top news is a report from Bain & Co. that says private equity firms will be under pressure to unload investments in 2012, as they race to put vast sums of aging "dry powder" to work before investment periods expire. According to Bain & Co.’s report, uncertainties in the economic outlook and volatile equity markets will make it difficult for buyers and sellers to agree on price.
