DETROIT -- Cooper Standard Holdings Inc. agreed to purchase an additional stake in its Chinese automotive sealing joint venture for $60 million.
The fluid systems and sealing supplier, based in suburban Detroit, will purchase an additional 47.5 percent ownership stake in Huayu-Cooper Standard Sealing Systems Co. It will own 95 percent of the joint venture with Huayu Automotive Systems Co., Cooper Standard said in a statement.
The acquisition is expected to close in the first quarter of 2015, pending Chinese regulatory approval.
Huayu-Cooper Standard operates nine plants and two technical centers in China and is the largest automotive sealing supplier in the country with revenue of $187 million in 2013.
“This transaction is an important element in our growth strategy and positions Cooper Standard as the clear leader in sealing and trim systems in the China automotive market,” Jeffrey Edwards, chairman and CEO of Cooper Standard, said in a statement. “With this purchase, Cooper Standard will be able to better support our customers on global platforms produced in China, as well as capitalize on growth opportunities with domestic Chinese automakers.”
Cooper Standard generated net income of $14.3 million in the second quarter, which ended on June 30, on revenue of $857.6 million, down from income of $26.1 million on revenue of $787.7 million during the same quarter last year.
Cooper Standard shares closed Wednesday at $65.57 -- up more than 33 percent for the year.
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