Beru, the German maker of spark plugs and electric components, is close to acquiring two businesses, including one believed to be based in the USA.
One target company is a specialist in electronic sensor technology, the other in ignition technology.
The combined revenue of the targets is approximately E70 million, according to Beru, which is based in Ludwigsburg. The acquisitions are expected to be completed this year.
Beru, which considers itself a world leader in diesel glow plugs, wants to expand the product range of its replacement-parts operations.
Rolf Woller, a supplier industry analyst for Hypo-Vereinsbank in Munich, said Beru is one of Germany's most profitable publicly owned suppliers. 'Beru is one of the smallest companies to fund acquisitions from cash flow,' he said.
He believes Beru has strong growth potential based on good prospects for electronic tire-pressure control systems. In the last 12 months, Beru revenues from tire-pressure controls increased 42.1 percent to E52.3 million despite strong competition from Bosch and Continental.
Beru's annual revenue is E303 million. It expects that to grow to E500 million within three years.