NEW YORK—For the second time in five years, the Goodyear-branded air springs business will have a new owner.
EnPro Industries Inc. has agreed to sell its Stemco air springs business to private equity firm Turnspire Capital Partners L.L.C. for $32 million in cash and a $7.5 million long-term promissory note, according to an EnPro news release. The purchase price is subject to adjustment based on the amount of cash and working capital on the closing date. The sale is expected by the end of this year's third quarter and is subject to antitrust approvals and typical closing conditions.
The deal includes EnPro's Stemco air springs business unit, which manufactures the Goodyear-licensed air springs, as well as Super Cushion-brand and Spring Ride-brand air springs. The divestment is part of the Charlotte, N.C.-based firm's restructuring of its heavy duty truck business.
"The sale of Stemco's air springs business marks a significant milestone in our portfolio reshaping effort within Stemco and significantly reduces EnPro's exposure to the commercial vehicle and heavy-duty truck markets," Marvin Riley, EnPro president and CEO, said in a statement. "Over the past year, we have conducted an extensive review of our portfolio of companies to identify businesses and product lines that are no longer aligned with our long-term objectives."
He said based on that study, the company has exited several product lines and divested a number of businesses to reduce its exposure to the heavy duty truck market. The company plans to have these moves completed by year's end.
New York-based Turnspire said in a statement it intends to maintain Goodyear Air Springs as an independent business, serving truck and bus fleets throughout North America with products for trucks, trailers, buses and specialty equipment.
According to a news release issued by Turnspire, the acquisition includes all assets of Goodyear Air Springs, including full brand licensing rights and a 22,000-sq.-ft. technical and R&D center in Fairlawn, Ohio, as well as manufacturing facilities, intellectual property, real estate and personnel throughout the U.S. and Mexico.
Additionally, David Brinkman, who served as Goodyear Air Springs' general manager with EnPro, will stay on after the acquisition is finalized, leading the independent business as CEO.
"We look forward to continuing the Goodyear Air Springs legacy as an independent company by leveraging an extensive product portfolio and bringing innovative technology solutions to leading OEM partners and aftermarket customers," Turnspire Partner Abel S. Osorio said in a statement.