ALSIP, IL — Universal Automotive has purchased several business assets of TRW Automotive’s Kelsey-Hayes subsidiary. The Livonia, Mich.-based businesses sold for $11 million in cash plus additional contingent payments.
Universal has acquired the Autospecialty, ValuMaxx and Power Stop brands from Kelsey-Hayes. It also has entered into a licensing agreement for the use of the TRW trademark for premium quality brake rotors and drums and a supply agreement for TRW suspension products.
With the acquisition, annualized sales of Universal Automotive are expected to exceed $100 million. Assets being acquired from Kelsey-Hayes generated sales in 2003 of approximately $55 million. Universal Automotive Industries had 2003 net sales of approximately $58 million.
Universal President and CEO Arvin Scott said the acquisition will likely enable Universal to achieve profitable operations in 2004.
“This transaction marks a decisive turning point in the growth and development of our company,” said Scott. “The acquisition nearly doubles the size of our company, strengthens our management team, significantly broadens our product and offerings with well established brands and reduces delivery times to customers through the addition of an East Coast distribution center. Customers will be better served by our enlarged organization, which in addition to our strong respective brand names, now includes Autospecialty’s industry-leading catalog and first-to-market product philosophy, along with additional undercar products.
For more information on Universal Brake, visit: www.universalbrake.com.
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