WEINHEIM, Germany (Dec. 20, 2007) — Freudenberg Group plans to sell its Flexitech brake hose businesses in the U.S. and Europe to Mitsubishi Corp. and Meiji Flow Systems, the German rubber parts firm announced Dec. 19.
The transfer is expected to take place in January, following approval by anti-trust authorities. The purchase price was not disclosed.
The sale fits with Freudenberg's strategy of concentrating on seal and vibration control technology as one of its core competences.
Jorg Sost, a member of the company's management board, said that by acquiring the European and American business, Mitsubishi and Meiji will achieve strong presence throughout the world for its globally active customers.
Mitsubishi and Meiji — already successful with brake hose activities in Asia — intend to continue the globalization of their activities and to expand business in Europe and the U.S. through the purchase of the shares in Flexitech´s European companies and the remaining shares in the Flexitech joint venture in the U.S.
The Flexitech operations employed about 500 in Europe and the U.S. and reported sales of about $114 million in fiscal 2006.