Crain News Service
DETROIT - Automotive supplier MascoTech Inc. plans to leave the replacement parts and auto coatings business this quarter, disposing of four businesses with combined sales of around $125 million.
No buyers were mentioned by MascoTech, which is based in Taylor, Mich. Analysts speculated that auto suppliers such as Dana Corp. of Toledo, Ohio, or Borg-Warner Automotive Inc. of Chicago might be interested.
The businesses for sale are BLD Products in Holland, Mich.; MascoTech Coatings in China Township, Mich.; International Brake Industries in Lima, Ohio; and Pylon Manufacturing in Deerfield Beach, Fla.
BLD Products, International Brake Industries and Pylon Manufacturing make automotive replacement parts ranging from brakes to diesel engine parts to wiper blades. MascoTech Coatings makes and applies custom coatings for auto trim and lights. The four businesses employ about 1,000 people.
While MascoTech would not disclose potential buyers, it did say a sale was in the works and should be completed by the end of March. The sale will take MascoTech out of the replacement parts and auto coatings business.
'The decision to divest these businesses is one more step to focus on our core competencies like metal-formed products,' said Kurt Ruecke, MascoTech communications manager. 'We want to focus on those markets where we have a leadership position.'
Ruecke would not discuss the operations' individual sales or earnings. Still, the operations are small compared with MascoTech's total size. It had 1997 sales of $1.6 billion. Its $689 million in 1997 North American original-equipment automotive parts sales made it No. 47 on Automotive News' list of largest North American suppliers. MascoTech's major automotive products are metal parts, gears, shafts and transmission components.