Saturday, September 30, 2006

FTE Automotive acquires Automotive Products

Brake and clutch manufacturer, FTE Automotive, which at the end of 2002 was the subject of a management buy-out, has acquired Automotive Products (USA), major US clutch actuation company.

World-leading brake and clutch manufacturer, FTE Automotive, which at the end of 2002 was the subject of a management buy-out financed by HgCapital, has acquired Automotive Products (USA), a major US clutch actuation company. With a turnover of $60 million, AP is the leading manufacturer of hydraulic clutch actuation systems in North America. AP supplies primarily the light commercial vehicle after-market sales channel, a business that is highly complementary to FTE's passenger car vehicle manufacturer customer base.

FTE has a reputation for product innovation, particularly with the development of a semi-automatic clutch for gearboxes of premium cars.

Its expansion into North America, together with a rapidly developing business in Asia, consolidates its global presence and position as the world market leader in clutch hydraulics.

The combined company will turn over in excess of EUR 350 million.

Karsten Hartmann, associate director at HgCapital in Frankfurt, said: 'We are delighted to have contributed to the success of the acquisition through our partnership with the FTE management team.

Despite a difficult year in 2003 for the automotive industry, FTE continues its history of profitable growth and has responded to the challenges of an increasingly competitive market place.

'Our continued success in the German market is based on our sector expertise, which allows us to fulfil our ethos of adding value by identifying and realising consolidation opportunities in order to help achieve a company's expansion plans.' Commenting on the acquisition, Wolfgang W.

Bruns, CEO of FTE said: 'This acquisition is another step in our development plans for FTE.

Over the last year HgCapital has worked closely with us to streamline our cost structure and make operational improvements.