Federal-Mogul Corp. has agreed to acquire European bearings supplier DZV Bearings Co., based in Dimitrovgrad, Russia.
Terms of the deal were not disclosed today by the diversified U.S. auto supplier, known for its variety of original equipment and brand-name auto parts such as Champion spark plugs and ANCO wiper blades. The acquisition is expected to close no later than early first quarter of next year, pending regulatory approval, the company said.
DZV employs 375 and supplies engine bearings, bushings and thrust washers to Russian automakers.
"The acquisition of DZV will expand Federal-Mogul's strong global position in the engine bearings market and provides an excellent growth platform to increase our presence in the commercial vehicle and industrial engine market in Russia, Central and Eastern Europe," Richard Llope, senior vice president of bearings for Federal-Mogul, said in a news release.
Federal-Mogul already operates pistons plants in Russia, in the cities of Naberezhnye Chelny amd Togliatti.
The Russian automotive market is predicted to overtake Germany as the largest market in Europe by 2020, according to a study by Boston Consulting Group.
The firm forecasts that Russia's auto market will grow by an average of 6 percent annually through 2020, reaching 4.4 million units in sales, up from 2.9 million in 2012.