Echlin Inc. has agreed to buy ITT Automotive's North American aftermarket brake business.
Echlin's purchase, renamed Aim- co Products Inc., includes parts plants in the United States and Canada. The division, which has annual sales of about $140 million, makes brake drums, rotors, shoes and pads under the Aimco brand name. It also makes original-equipment steel disc plates and shoes. The deal's price was not disclosed.
ITT Automotive, a unit of ITT Industries Inc., said it will continue to own and operate its aftermarket business in Europe. The company said the sale of its aftermarket brake parts business in North America will let ITT Automotive focus on supplying complete systems to automakers.
Echlin said the acquisition lets it broaden its aftermarket brake parts business. The aftermarket and original-equipment supplier in Branford, Conn., has annual sales of $3.4 billion.
It ranks No. 64 on the Automotive News list of top OEM suppliers to North America; ITT Automotive is No. 13.
Separately, Echlin said a proposed sale of its Midland-Grau commercial truck brake business in North America and Europe to AlliedSignal and Knorr-Bremse AG of Munich, Germany, is now off. Echlin said a 'sharp fall off' in the European heavy-truck market killed the deal, which was announced in February.