EVANSVILLE, IN and NORTH CANTON, OH — 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. Completion of the transaction is subject to regulatory approval and other customary closing conditions.
The acquisition allows for the expansion and acceleration of a powerful and efficient global sourcing and manufacturing platform. The transaction also advances UCI’s strategy to create Centers of Excellence in which business units are dedicated to specific product lines. In this move, ASC will become the company’s Center of Excellence for water pump production and Airtex will continue as the Center of Excellence for fuel pumps.
“ASC is an innovative company that has an excellent growth trend. ASC has leveraged its unique business model and import strategy to quickly become an industry leader in water pump manufacturing,” said Bruce Zorich, CEO of UCI. “We are very pleased to welcome ASC into the UCI family. We believe the combining of ASC with our existing water pump business will be an excellent fit and result in a strong, efficient business that will compete well in today’s increasingly competitive global marketplace.”
“We’re very excited to partner with UCI,” said Ted Swaldo, president and CEO of ASC. “We look forward to continuing ASC’s tradition of quality and innovation as part of the UCI team.”
Once the acquisition is complete, ASC will become the seventh operating unit in the United Components group, which includes Airtex, Champion Laboratories, Wells Manufacturing Corp, Neapco, Flexible Lamps and Pioneer, Inc.
_______________________________________
Click here to view the rest of today’s headlines.
