Freudenberg Sells Brake Hose Business to Long-Term Partners
Mitsubishi Corporation and Meiji Flow Systems acquire Flexitech
WEINHEIM, Germany, Dec. 19 -- On December 19, 2007, Mitsubishi Corporation and Freudenberg signed a contract for the sale of the European and US Flexitech companies. It is planned to transfer the brake hose activities of the Flexitech companies to Mitsubishi Corporation and Meiji Flow Systems in January following approval by the anti-trust authorities. The parties agreed to keep the purchase price confidential.
In a partnership which has lasted for more than 15 years, Freudenberg, together with Meiji Flow Systems, has become the market leader in the European brake hose segment. In addition, Meiji Flow Systems and Freudenberg have cooperated successfully in the USA since 1999. In the 2006 financial year, about 500 Flexitech employees in Europe and the USA recorded sales totaling about 80 million euros.
Mitsubishi and Meiji, who are already successful with brake hose activities in Asia, intend to continue the globalization of their activities and to expand business in Europe and the USA through the purchase of the shares in Flexitech's European companies and the remaining shares in the Flexitech joint venture in the USA. "Our objective is to become the market leader in brake hoses throughout the world, in addition to Europe," said Katsuhiko Aoki, General Manager Mitsubishi Corporation.
The strategy of Freudenberg is to concentrate on seal and vibration control technology as one of its core competences. This is why the Group decided to dispose of its brake hose activities. "By acquiring the European and American business, Mitsubishi and Meiji will achieve strong presence throughout the world for our globally active customers," explained Jorg Sost, Member of the Freudenberg Management Board.
"Mitsubishi and Meiji will invest in Flexitech business and integrate the business into their international network," explained Claus Moehlenkamp, Speaker of the Management board of Freudenberg Seals and Vibration Control Technology and Board Member of Flexitech USA. To ensure continuity, Claus Moehlenkamp will continue to support the activities of Flexitech on the company's board even after the change of ownership.
Flexitech Europe SAS is located in Saint-Andre-le-Puy, France. It designs, manufactures, and markets automotive hydraulic brake hoses to European OEMs and runs a hose manufacturing plant and an assembly plant. Flexitech RO SRL Romania, assembles hoses purchased from Flexitech Europe SAS. Flexitech, Inc. is located in Bloomington, Illinois. It designs, manufactures, and markets automotive hydraulic brake hoses to US OEMs and runs an assembly plant.
Freudenberg is a family company that offers its customers products and services that are technologically demanding and require a considerable amount of consultation. First and foremost, the group is a component supplier concentrating on the areas of seals and vibration-control technology, non- woven fabrics, as well as lubricants and release agents. This is complemented by the Household Products business area with the strong vileda® brand, as well as the group's Specialties and Service companies. The group employs around 33,000 total staff in 53 countries and records annual sales exceeding EUR 5 billion.
Mitsubishi Corporation (MC) is Japan's largest general trading and investment company (sogo shosha) with more than 200 locations in some 80 countries worldwide. With more than 500 group companies, MC has a multinational workforce with nearly 55,000 employees. MC has long been engaged in business with customers around the world in virtually every sector of industry, including energy, metals, machinery, chemicals, food products and general merchandise. Mitsubishi has a strong track record in various industries.
Meiji Flow Systems (MFS) is a subsidiary of Meiji Rubber and Chemical (MRCC). With a history dating back 100 years, it is one of the oldest Japanese manufacturers of rubber products. The business focus at MFS is upon parts for the automobile industry. MFS produces automotive hoses in nine countries. Its principal operation is located in Kanagawa, Japan. The company employs a staff of 165.
Source: Freudenberg
CONTACT: Markus Rademacher, +49(0)6201-80-4049, for Freudenberg
Web site: http://www.freudenberg-nok.com/
