PLYMOUTH, Mich. (May 23) — Freudenberg-NOK G.P. is selling the engine seal, power steering hose and engine and transmission mounts of its Corteco unit's North American Traditional Aftermarket Business to ROL Manufacturing of America Inc.
The deal is subject to standard closing preconditions and is expected to be concluded next month. The purchase price wasn't disclosed.
The agreement includes the assets in the U.S., Canada and Mexico related to Corteco Engine Gaskets & Seals, Omega Power Steering Hose, and MounTec Engine & Transmission Mounts. Following the acquisition, the current Freudenberg-NOK Newport, Tenn., gasket factory, which employs 37, will close, the companies said. Several key quality and plant management staff members from that facility will be retained on a contract basis by ROL.
Manufacturing equipment and production from the Newport site will be transferred to ROL's new plant in Montreal. The Omega Power Steering Hose plant in Solon, Ohio, and the Corteco de Mexico business in Queretaro, Mexico, will continue to operate as usual and all employees are expected to be retained, the companies said.
Customer service, product management, packaging and distribution for the three product lines will remain at Freudenberg-NOK's Milan, Ohio, facility for up to a year to ensure a seamless transition for customers, the firms said. After that time, the functions will move to ROL's Oviedo, Fla., operation.
Freudenberg-NOK said it doesn't anticipate a reduction in the work force in the short-term at the Milan facility because of the sale.
Additionally, ROL and Freudenberg-NOK agreed to form a strategic alliance via a supply agreement that will go into effect at the close of the purchase.