NOVI, Mich.—Cooper Standard has reached an agreement to divest its anti-vibration systems business to Continental, a firm Cooper Standard said can better facilitate global growth for the unit.
The agreement includes a binding offer from Continental to purchase substantially all of Cooper Standard's anti-vibration business in France and its respective interest in the joint venture in India, Cooper Standard said in a Nov. 2 news release.
Financial details were not disclosed.
"Our strategic vision is to be a leading global manufacturer in all core product lines we produce," Jeffrey Edwards, chairman and CEO of Cooper Standard, said in a statement. "While we have extensive automotive anti-vibration systems business in North America, we determined that the best course of action is to divest this product line to a company that will enable the critical focus necessary to expand the business globally."
Cooper Standard said its AVS business employs about 1,000 and, according to its 10-K filing, generated about $326.7 million in sales in 2017. Products include conventional and polyurethane strut mounts, spring seats and jounce bumpers; conventional and hydraulic bushings; conventional and hydraulic body and cradle mounts; mass dampers; and dual durometer (bi-compound) bushings, among others.
"Cooper Standard enjoys excellent expertise in material and product design knowhow, predictive component analysis, system integration and vehicle testing. We complement each other in product space and customer base, and the combined business will drive innovations in lightweight and other anti-vibration products," Kai Fruehauf, head of Continental's Vibration Control business unit, said in a statement.
Hanover, Germany-based Continental said in its own Nov. 2 news release that the business will be integrated within the Vibration Control unit of its ContiTech division, which produces non-tire rubber parts for a variety of industries, including automotive. According to Conti, the acquired business includes research and development capabilities in Canada, France, India and the U.S., with five manufacturing facilities.
ContiTech's Vibration Controls unit employs more than 2,600 people with sites and engineering centers at 11 locations in Brazil, China, France, Germany, Mexico and the U.S.
According to Cooper Standard, the parties will pursue signing an agreement in the coming weeks, once works council consultations have taken place. It added that completion of the divestiture is subject to the approval of the respective antitrust authorities and the signature of the aforesaid agreement for the French business.
Cooper Standard operates in four product categories—rubber and plastic sealing, fuel and brake lines, fluid transfer hoses and anti-vibration systems.