KIYOSU, Japan—Toyoda Gosei is selling its German production subsidiary Toyoda Gosei Meteor to AEQPH GmbH.
The sale to the German business fund-owned company is part of a global restructuring plan at Toyoda Gosei, with the aim of improving earnings growth.
Despite previous restructuring efforts, Toyoda Gosei said the German business "continued to struggle," prompting the sale "after considering remediation measures."
To be completed by the end of the year, the deal will transfer ownership of TGM and its U.S. subsidiary, Meteor Sealing Systems, to Munich-based AEQPH, which recently changed its name from Scur-Alpha 1123.
Based in Bockenem, Germany, TGM was founded in April 2014 and produces weatherstrips.
As of March 2019, the business employed 1,360 people.
TGM was founded in parallel with the acquisition of Dover, Ohio-headquartered Meteor Sealing Systems in April 2014. The U.S. unit manufactures weatherstrips and employs 315 people.
The estimated loss to be incurred from the transfer is about $192 million, Toyoda Gosei said.
The group will report this as a loss on liquidation of business in its financial results for the fiscal year ending March 31, 2020.