Technology company Continental has reached an agreement with the Michigan-based Cooper Standard, on the purchase of its anti-vibration systems (AVS) business. With this acquisition, Continental is expanding its global presence for anti-vibration and noise reduction technology, particularly in North America.
The agreement includes a binding offer from Continental to purchase substantially all of Cooper Standard’s anti-vibration business in France and its respective interest in the joint venture in India -- Sujan Cooper Standard -- on the basis of which the parties view to signing an agreement in the next few weeks, once works council consultations have taken place.
Mumbai-based Sujan Cooper Standard (SCS), a JV between India’s Sujan Group and Cooper Standard, despatches about 1.5 million parts every month across 162 basic product categories under anti-vibration systems, and has chalked out an aggressive growth strategy for the mid-term. The 10-year-old company, which specialises in the manufacture of anti-vibration systems (AVS), aims to double its current turnover of Rs 190 crore over the next five years.
With the acquisition, Continental will expand its vibration control activities while at the same time ensuring the perfect complement to its global automotive customer portfolio.
“This acquisition is enhancing our vibration control business and our ability to serve the automotive industry on a global basis. Weight reduction will drive future mobility, because less weight results in less fuel consumption and in fewer CO2 emissions. This increases the vehicle’s efficiency and helps to extend the range of electric and hybrid vehicles,” said Hans-Jürgen Duensing, Member of the Continental Executive Board and responsible for the ContiTech division.
Cooper Standard has extensive anti-vibration systems expertise in North America and offers global automotive manufacturers state-of-the-art anti-vibration solutions designed to mitigate vehicle noise, vibration and harshness (NVH) as a way of enhancing ride quality and handling. The AVS business of Cooper Standard operates five manufacturing facilities – including R&D capabilities in Canada, France, India and the USA – and employs approximately 1,000 people.
Smooth transition for all stakeholders
"Our strategic vision is to be a leading global manufacturer in all core product lines we produce," said Jeffrey Edwards, chairman and CEO, Cooper Standard. "While we have extensive automotive anti-vibration systems business in North America, we determined that the best course of action is to divest this product line to a company that will enable the critical focus necessary to expand the business globally."
Cooper Standard's AVS business has approximately 1,000 employees and offers a comprehensive portfolio of anti-vibration systems, technologies and products to automotive OEMs that mitigate vehicle NVH (noise, vibration and harshness), and enhance ride and handling. Cooper Standard will work closely with Continental AG to ensure a smooth transition for all stakeholders.
“Cooper Standard enjoys excellent expertise in material and product design knowhow, predictive component analysis, system integration and vehicle testing. We complement each other in product space and customer base, and the combined business will drive innovations in lightweight and other anti vibration products,” said Kai Frühauf, head of Continental’s Vibration Control business unit in which the organization is planned to be integrated.
“Together we can take advantage of future technological opportunities for passenger cars and light trucks. At the same time, we add additional inhouse mixing capacities in the US with full material development capabilities,” Frühauf added.
Cooper Standard's anti-vibration systems expertise
Cooper Standard offers a comprehensive suite of high-quality anti-vibration systems, technologies and products to automotive OEMs that mitigate vehicle NVH (noise, vibration and harshness), and enhance ride and handling.
It is a full service global supplier with manufacturing and technical centers in North America, Europe and Indo-Asia. Over the years, it has become a trusted anti-vibration system supplier to Ford, GM, Chrysler, PSA Peugeot-Citroen, Renault-Nissan, India's Mahindra & Mahindra and many other global automotive OEMs.
All of Cooper Standard's anti-vibration products are developed using a cost effective, technology-focused approach. The focus is on providing systems solutions to meet customer requirements and vehicle-specific characteristics – linking technology to vehicle performance and cost targets. The company has extensive experience and expertise in Material development; Predictive component analysis and systems simulation; Product design and optimization; Hands-on tuned system integration; Component validation and vehicle testing; Lightweight materials; and Manufacturing process simulation and technology development.
Cooper Standard's product portfolio comprises Powertrain Mount Systems and Chassis Systems.
Vibration Control is part of Continental’s ContiTech division. The business unit employs more than 2,600 people and operates production sites as well as development and application engineering centers at eleven locations in Brazil, China, France, Germany, Mexico, Slovakia and the U.S.A.
The Continental division offers its customers connected, environmentally friendly, safe and convenient industry and service solutions using a range of materials for off-highway applications, on rails and roads, in the air, under and above the ground, in industrial environments as well as for the food and furniture industry. With around 47,000 employees in 42 countries and sales of some €6.2 billion (2017), the global industrial partner is active with core branches in Asia, Europe as well as North and South America.
Also read: Sujan CooperStandard chalks out aggressive mid-term growth plan