Brembo North America Acquires Hayes Lemmerz Division
Hayes Lemmerz International has released further details on the sale of the company’s Automotive Brake Components division. The purchaser has been named as Brembo North America, Inc., a subsidiary of Italy’s Brembo S.p.A. The debt-free transaction sees US$58 million worth of shares change hands, and under the agreement announced on November 9, Brembo North America has acquired all of the stock of two Hayes Lemmerz subsidiary companies that own the brake manufacturing operations in Homer, Michigan and Apodaca, Mexico and certain assets used in connection with the division’s sales, marketing and engineering group located in Hayes Lemmerz’ headquarters in Michigan, USA.
The facilities in Homer and Apodaca manufacture brake rotors and drums for the North American passenger car and light truck markets. The division in total employs approximately 250 people, including 64 technical associates, and in 2006 earned annual sales of approximately $ 120 million.
“We have built a strong business with a solid reputation for quality products, delivery and performance,” said Daniel Sandberg, president of Hayes Lemmerz’ Automotive Components Group. “Combining this business with an international, technically dynamic brake company like Brembo will better position the combined company to grow and compete in the global market. Our brake teams in Homer, Apodaca and Northville look forward to leveraging our shared commitment to superior customer service, product innovation and technology.”
“I am very pleased with the acquisition of this well-managed and successful business,” commented Brembo chairman, Alberto Bombassei. “This is another important step for Brembo in the NAFTA region, where we already have a strong presence with 2006 sales of approximately $140 million. Our purchase of Hayes Lemmerz’ rotor business will greatly improve Brembo’s leadership position in the North American brake rotor market. We continue to believe that North America, as a mature and sophisticated market, is one of the most important in the world, which fits well with Brembo’s strategic position. This transaction will provide Brembo with a solid manufacturing base to supply all the North American operations of all of our customers,”
Brembo S.p.A., as an acknowledged world leader and innovator of disc braking system technology for vehicles, currently operates facilities in 12 countries, supplying braking systems to cars, commercial vehicles and motorcycles worldwide. The company employs more than 4,700 persons, nine per cent of whom are engineers and product specialists working in R&D and technical areas. The company already has a presence in North America, operating manufacturing plants in Puebla, Mexico, Costa Mesa, California and Charlotte, North Carolina.