NOVI, Mich.—Cooper Standard Holdings Inc. has reached an agreement to sell its thermal and emissions product line to Halla Visteon Climate Control Corp.
HVCC said it paid $46 million for the acquisition, which is subject to adjustment, certain regulatory and other approvals. The firms expect the deal to close in the third quarter of 2014.
“A strategic decision was made to divest our thermal and emissions product line and allow the company to focus resources on our four core product groups,” Jeffrey Edwards, Cooper Standard's chairman and CEO, said in a news release. “We will work closely with HVCC to ensure a smooth transition.”
After a strategic review, Cooper Standard defined its four core product lines as sealing and trim, fluid transfer systems, fuel and brake delivery, and anti-vibration systems—all with a rubber application.
During that review, the firm determined that the thermal and emissions line was not core to the company, despite the fact it is a growing segment.
Keith Stephenson, chief operating officer of Cooper Standard, said through a combination of technology, advantaged global footprint and world class operations, the firm can be a clear market leader in its core product lines.
“We remain firmly committed to being a global leader in automotive sealing, premium hose and anti-vibration systems,” Stephenson said. “The divesture will allow for greater focus and future investment in these core product lines as well as our fuel and brake business.”
The tentative sale includes exhaust gas recirculation modules, electronic coolant pumps and valves, electronic wastegate actuators, and electronic throttle bodies in addition to related assets from operations in North America, Germany, France and the Czech Republic, Cooper Standard said.