HANOVER, Germany—ContiTech A.G. will sell the Veyance Technologies North American air springs business to Charlotte-based EnPro Industries Inc., the German company announced.
The air springs business will be managed as part of EnPro's Stemco division, according to a news release from ContiTech.
The transaction is expected to close in July, subject to regulatory approval. Terms of the deal were not disclosed.
The divestiture was part of the requirements set by antitrust authorities in the U.S., Mexico and Brazil as part of ContiTech's $1.58 billion acquisition of Veyance, which was completed in January 2015.
The transaction includes around 500 employees in San Luis Potosi, Mexico, and about 30 commercial and employees in research and development in the U.S. and Canada.
“With EnPro's Stemco business we have found a good home for Veyance's air springs team in North America,” Hans-Juergen Duensing, head of ContiTech, said in a news release.
The Veyance takeover was part of ContiTech's strategy to strengthen its global industrial business and reduce exposure to automotive original equipment markets.
With the takeover of Veyance, the proportion of industrial business of ContiTech's overall business has grown to 54 percent from 42 percent.