Hitachi teams up with Eaton
A subsidiary of Eaton Corp. of Cleveland has signed an agreement with Hitachi Ltd. of Tokyo to speed development of electronics and expand marketing of a collision warning system. Under terms of the agreement, Hitachi and Eaton's Vorad Division will develop microelectronics jointly for a next-generation automotive cruise-control system. The two companies hope to increase performance and reduce weight and costs for the units.
FINANCING - Automotive wheel and brake maker Hayes Lemmerz International Inc. plans to issue $250 million in 8.25 percent senior-subordinated notes due in 2008. The Romulus, Mich.-based supplier will use the proceeds to repay debt in anticipation of its pending acquisition of CMI International Inc. Hayes Lemmerz agreed to pay $605 million in cash and assume $165 million in debt to acquire the Southfield, Mich.-based supplier of aluminum, iron and plastic components.
ACQUISITION - Intermet Corp. has agreed to purchase the Tool Products Division of Quadion Corp. The terms and price of the proposed sale of Tool Products, a New Hope, Minn.-based supplier of aluminum die castings, were not disclosed. Sales for Tool Products during its 1998 fiscal year, which ended Sept. 30, were $67 million. The acquisition is expected to provide Intermet, of Troy, Mich., with an auto industry supplier that also manufactures for the electronics, communications, power tool and recreation industries.
ACQUISITION - Meritor Automotive Inc. plans to acquire Euclid Industries, a North American supplier and manufacturer of replacement parts for medium- and heavy-duty vehicles. Terms of the deal were not disclosed. Meritor, of Troy, Mich., earlier signed an agreement to acquire Volvo's heavy truck axle manufacturing operations for about $135 million in cash. The privately-held, Cleveland-based Euclid Industries generated sales of more than $100 million for its fiscal year, which ended Aug. 31.
COMMUNICATIONS - Clarion Corp. of America released its multimedia aftermarket computer, the AutoPC, to audio dealers in California, Oregon and Washington. The computer, based on Microsoft Corp.'s Windows CE operating system, combines audio, navigation, computer functions such as e-mail, and wireless communications. Clarion, based in Gardena, Calif., said national distribution through audio dealers is set to begin in January.