|09:01 EDT||CTTAY||EnPro acquires Veyance North American Spring Business from Continental AG |
EnPro (NPO) Industries announced it has completed its acquisition of the Veyance North American air springs business from Continental AG (CTTAY). The acquisition agreement was previously announced on June 3, 2015, subject to certain regulatory approvals that have been cleared. The air springs business unit is the manufacturer of Goodyear air springs that are used in suspension systems, cabs and seats of commercial vehicles. Previously part of Veyance Technologies, Inc., which Continental AG acquired in January 2015, the business will become part of EnPro’s Stemco division. Stemco is a leader in the technology and manufacture of commercial vehicle wheel end, braking, and suspension components, as well as innovative tire and mileage solutions. The air spring business unit manufactures Goodyear air springs products in its facility in San Luis Potosi, Mexico with a commercial organization in the U.S., Canada, and Mexico, and engineering, testing, and administrative resources in Fairlawn, Ohio. The addition of the air springs business unit significantly expands Stemco’s presence and scale in the commercial vehicle suspension market. The business generates approximately $100M in revenue with a fairly even split between OEM and aftermarket sales. EnPro paid approximately $20M for the business, which equates to approximately 4.1x EBITDA including estimated integration costs. The business brings a highly-skilled workforce of approximately 530 employees. EnPro will provide additional detail about the acquisition during its Q2 earnings call on July 31, 2015.