Borg-Warner, Eaton deal
CHICAGO - In an acquisition that will allow it to expand into light-vehicle cooling systems, Borg-Warner Automotive Inc. will pay $310 million to buy Eaton Corp.'s Fluid Power Division. The Eaton unit has annual sales of about $190 million and operations in North America and Europe. Earlier this year, Borg-Warner moved into the modular cooling systems business with the purchase of Kuhlman Corp., which supplies commercial vehicles.
PORTLAND, Ore. - Williams Controls Inc., a producer of sensors and controls, has purchased the intellectual property and assets held by ProActive Pedals, the adjustable foot pedal division of Active Tool & Manufacturing Co. Inc. of Roseville, Mich. Williams paid $5.75 million and assumed $350,000 in liabilities to obtain the supplier's designs, technical know-how and patent rights to produce foot-pedal systems and modular pedals. Pro-Active is working with U.S. automakers to supply adjustable pedal systems on 2001 and 2002 model vehicles.
DETROIT - Delphi Automotive Systems Corp. of Troy, Mich., has signed an agreement to develop business opportunities with a Japanese producer of seat belts, Ashimori Industry Co. Ltd. The agreement is not linked to a specific customer or program but will involve technical, production and marketing cooperation in general between the two companies. Ashimori makes seat belts, airbags and industrial products. It had 1998 sales of about $200 million. Delphi produces occupant protection systems, but not seat belts.
DETROIT - Freudenberg-NOK of Plymouth, Mich., has taken two joint venture partners, Meiji Rubber & Chemical Co. Ltd. and Mit-subishi Corp. of Japan, in an effort to enter the North American brake hose market. The new venture is Flexitech Inc., owned 51 percent by Freudenberg-NOK, 29.4 percent by Meiji and 19.6 percent by Mitsubishi Corp. Customers include Mitsubishi Motor Manufacturing of America Inc., Honda of America Manufacturing and Subaru-Isuzu Automotive Inc.
HAYES HIKES THAI STAKE
DETROIT - Hayes Lemmerz International Inc. of Northville, Mich., has increased its ownership stake in an aluminum wheel producer in Thailand, Siam Lemmerz Co. Ltd., from 25 percent to 70 percent. The venture produces 700,000 wheels annually for customers in Asia and Europe.
DETROIT - Federal-Mogul Corp. of Southfield, Mich., plans to acquire Sabo Industria e Comercio Ltda., a Brazilian producer of gaskets, seals and hoses. The acquisition will include Sabo's European subsidiary, KACO GmbH + Co. Terms of the deal were not disclosed. Sabo has annual sales of $180 million.
MASCOTECH INCOME FALLS
DETROIT - MascoTech Inc. of Taylor, Mich., reported its net income declined 12 percent in the second quarter to $26.1 million on sales of $437 million. In the same quarter a year ago, net income was $29.8 million on sales of $433 million. During the second quarter of 1999, MascoTech sustained a $17.5 million charge to reflect a decrease in value of assets related to its hydroforming operations. The company also recorded a $16.5 million gain from the sale of its aftermarket businesses.