Mann + Hummel to buy Affinia's auto filter unit for $1.33 bn including debt
18 Aug 2015
German car parts maker Mann + Hummel yesterday struck a deal to buy US automotive replacement product maker Affinia's auto filter unit in order to enter the US heavy-duty and hydraulic filters market.
Under the deal, Mann + Hummel will acquire the global filtration operations (excluding Affinia's South American operations).
Stuttgart-based Mann + Hummel did not disclose the financial terms of the deal, but Affinia said in a regulatory filing that the sale price was $513.1 million.
Mann + Hummel will also take on Affinia's debt of $822 million, taking the total deal price to around $1.33 billion.
Affinia's owner, private equity firm Cypress had put Affinia's auto filter unit for sale this year and hired investment bank Baird to find a prospective buyer.
Cypress and Canadian pension fund OMERS had acquired North Carolina-based Affinia from car parts maker Dana in 2004 for $1.1 billion.
Affinia's filtration unit specialises in after-market oil, fuel, air and coolant filters.
The unit posted 2014 sales of $967 million and earnings before interest, tax, depreciation and amortization of $156 million.
Mann + Hummel said that it and Affinia's filtration business have highly complementary competencies and customer relationships. The acquisition will give it access to market segments such as US heavy duty and hydraulic filtration.
Alfred Weber, president and CEO of Mann + Hummel, said, ''This acquisition fits perfectly with our corporate strategy. It will enable us to grow globally and provide ample opportunity for growth and development for all of our people.''
''Mann + Hummel and Affinia's filtration business will serve customers better through a seamless, comprehensive portfolio ranging from passenger to heavy duty and industrial to hydraulic filtration solutions thanks to a combined 150 years of filtration expertise.''
Founded in 1941 by Adolf Mann and Dr. Erich Hummel, Mann + Hummel is one of the three global leaders in producing liquid and air filter systems, intake manifold systems, liquid filter systems, cabin filters and sound-design components called symposer, as well as filter elements for motor vehicles maintenance.
It employs around 16,000 people across more than 60 sites and had sales of €2.8 billion in 2014.
