Automotive sealing and anti-vibration component supplier Henniges Automotive Holdings Inc. has been acquired by China’s AVIC Automotive Systems Holding Co. Ltd.
Terms of the deal, announced Wednesday, were not disclosed.
Bloomberg News reported earlier this year that AVIC could pay about $1 billion for the supplier based near Detroit in Auburn Hills, Mich.
In a news release, Henniges called the deal “one of the largest acquisitions by a Chinese company of a U.S.-based automotive manufacturing company in history.”
In 2011, General Motors sold steering supplier Nexteer Automotive Corp. for $440 million to a Chinese joint venture that included AVIC. A123 Systems LLC was acquired out of Chapter 11 bankruptcy in 2013 by Chinese conglomerate Wanxiang Group Corp. for $256.6 million.
Henniges CEO Douglas DelGrosso said price was the primary consideration in selling, but also transferring ownership to a strategic buyer away from another financial buyer was attractive to management.
Henniges' previous owners, Connecticut private equity firm Littlejohn & Co. acquired the supplier in 2010 from Chicago private equity firm Wynnchurch Capital Partners LP.
AVIC will not consolidate any operations with Nexteer, DelGrosso said.
AVIC is a subsidiary of Beijing-based Aviation Industry Corp. of China, a nearly $50 billion government-owned aerospace and defense conglomerate.
“We are encouraged about this acquisition by AVIC Auto, which will provide the capital and financial backing needed to sustain and grow our business and ensure that the Henniges heritage, culture and name continue to thrive into the future,” Delgrosso said in a statement. “We are confident that AVIC Auto ownership will give Henniges Automotive further opportunities for continuous advancement in technology and solutions that drive positive results for our customers.”
Henniges reported revenue of $824.8 million in 2014, up from $611 million in 2011.
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