UK-based Tomkins has agreed to sell its Schrader division to a Chicago-based affiliate, Madison Dearborn Partners LLC, for a sale price of $505 million cash plus a small minority equity interest in the parent of the purchasing company.
Tomkins is jointly owned by Onex Corp. (OCX.TO) and the Canada Pension Plan Investment board.
The transactions may close in the second quarter of 2012.
Schrader promotes the use of its service packs when servicing the TPMS during tire changes and rotations. The company said each time a clamp-in sensor is removed from the rim hole, the grommet, nut, nickel-plated core and cap should be replaced. Snap-in sensors also should have their valves replaced each time the sensor is removed from the rim hole.
The reasons service pack replacement is “critically important,” according to Schrader, include:
- Rubber grommets replace old seals that may have taken permanent compression set;
- The valve stem nut replaces the old nut which may have damaged threads caused by over-torqueing or other mistreatment;
- Nickel-plated valve cores are used to prevent galvanic corrosion between non-similar metals (brass and aluminum), causing a brass core to seize into an aluminum stem;
- The valve cap with seal prevents dirt and moisture from entering the sensor and also acts as a secondary pressure seal. Old valve caps may have a seal that is compressed set or missing; and
- The washer replaces the old washer, which may have been deformed during initial installation.
AUBURN HILLS, Mich. (Dec. 1, 2011) Vehicle components maker BorgWarner Inc. has agreed to sell its Beru tire pressure monitoring system (TPMS) business to Huf Electronics G.m.b.H., an automotive electronics maker based in Dusseldorf, Germany.
The sale includes a plant in Bretten, Germany, Beru Electronics G.m.b.H., which employs approximately 230 people. Completion of the transaction is subject to regulatory approvals and could be completed by early 2012, Huf said.
Terms were not disclosed, but BorgWarner said it expects to book a loss of $10 million to $15 million on the transaction.
BorgWarner acquired the Beru TPMS business in 2005 as a small piece of its purchase of the Beru diesel cold start and ignition systems business. The product is known as the Beru Tire Safety System (TSS).
While not disclosing Beru Electronics annual sales, Huf Electronics said the business holds a significant market share in Europe, where the industry expects TPMS likely will become mandatory from 2014 onwards.
“We are planning to expand this segment even further and will use synergies to our existing product range,” said Huf Group CEO Ulrich Hulsbeck. “The product spectrum of Huf and Beru Electronics match quite well.”
While the TPMS product technology has been developed continuously and meets the upcoming strict European standards, the firm said, it departs from BorgWarner’s focus on powertrain technologies.
Huf Electronics is a unit of Huf Hulsbeck & Furst GmbH & Co. KG. of Velbert, Germany, a producer of mechanical and electronic key systems, lock sets, steering locks and remote control systems for the automotive industry. Huf Group reported sales of $1.1 billion in 2010.
Tire Business staff report