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Stemco Agrees to Buy Veyance Air Springs Unit
Trucking supplier Stemco has agreed to buy Continental AG鈥檚 Veyance-North America air springs business in North America in an effort to expand in that market.
Stemco, a subsidiary of EnPro Industries, in Charlotte, North Carolina, didn鈥檛 disclose terms. Veyance makes air springs with the Goodyear brand name and was acquired by Continental from Carlyle Group in January as part of a $1.8 billion deal.
鈥淭he air springs business carries with it premium product performance,鈥 Stemco President Todd Anderson said in a statement. 鈥淭heir record of success and growth potential make this an exciting addition to our business.鈥
Ohio-based Goodyear spun off Veyance in 2007. Veyance鈥檚 North American business is part of German-based Continental鈥檚 ContiTech unit.
The U.S. Justice Department last year imposed a requirement that the air springs unit be sold in order to preserve competition in that sector. After agreeing to that step, the Veyance sale was completed.
Continental鈥檚 statement said Veyance鈥檚 North American unit includes 500 workers at a plant in Mexico and 30 at its Ohio headquarters.
Stemco, which also makes seals, bearings and other wheel end products, expanded earlier this year by acquiring ATDynamics, which makes aerodynamic equipment for trailers.
The statement from the unit of EnPro Industries said the transaction was subject to regulatory approvals. Stemco, based in Longview, Texas, is advising customers to continue use of existing business communications with Veyance in the interim.