Stemco Agrees to Buy Veyance Air Springs Unit
Trucking supplier Stemco has agreed to buy Continental AG’s 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’t 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.
“The air springs business carries with it premium product performance,” Stemco President Todd Anderson said in a statement. “Their record of success and growth potential make this an exciting addition to our business.”
Ohio-based Goodyear spun off Veyance in 2007. Veyance’s North American business is part of German-based Continental’s 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’s statement said Veyance’s 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.
