MAHLE enters into a Stock Purchase Agreement with Condumex
Stuttgart/Germany, 22nd June 2007–The MAHLE Group, headquartered in Stuttgart, Germany, announced today that its subsidiary MAHLE Industries, Inc. has entered into a stock purchase agreement with Grupo Condumex, S.A. de C.V., Mexico.
From Condumex, MAHLE will acquire 51% of the shares of capital stock of Promotora de Industrias Mecánicas, S.A. de C.V. (Promec) which owns Sealed Power Mexicana, S.A. de C.V. and Sealed Power Autopartes, S.A. de C.V.
MAHLE has recently acquired, as part of an international transaction, Dana Corporation’s engine products group and, as a result, MAHLE indirectly acquired 49% in Promec. Upon satisfaction of the conditions to which the stock purchase agreement between MAHLE and Condumex is subject, MAHLE will acquire the entire business of Promec and its subsidiaries in Mexico. Promec produces cylinder liners and piston rings for passenger car and heavy duty applications for the OE and Aftermarket businesses. The agreement includes among others the acquisition of the Aftermarket brand "Carpro".
The planned acquisition includes a total of about 1,100 employees in 4 production plants in Mexico, which are located in Aguascalientes, Naucalpan, Ramos Arizpe, and Santa Catarina. In 2006 the business generated sales of USD 67 million.
The parties anticipate that the closing conditions will be satisfied in time to close the transaction by the end of June, 2007.
The MAHLE Group is one of the 30 largest automotive suppliers worldwide. As the leading manufacturer of combustion engine components, systems and peripherals, MAHLE is among the top 3 suppliers for piston systems, cylinder components, valve train systems, air management systems and liquid management systems. MAHLE employs more than 40,000 employees in 110 production plants and seven research and development centers. In 2006, MAHLE generated sales in excess of EUR 4.3 billion (USD 5.8 billion).