(By Balaseshan) Parker-Hannifin Corp. (NYSE:PH), a manufacturer of motion and control systems, said it has agreed to sell the automotive air conditioning portion of its Mobile Climate Systems Division to Hanover, Germany-based ContiTech AG for an undisclosed sum.
Parker-Hannifin said the mobile and hose portions of the Mobile Climate Systems Division are not part of the transaction.
The automotive air conditioning business manufactures highly engineered components for the global light vehicle automotive industry such as hose and tube assemblies, accumulators, receiver dryers and oil coolant assemblies.
The business is part of the Climate and Industrial Controls segment and operates in five global manufacturing sites with annual sales of about $140 million and 1,000 employees.
Parker believes that the long term prospects for this business and our employees will be best served as part of an organization with a more strategic focus in this market.
ContiTech AG is a suppliers of technical elastomer products in the non-tire rubber sector and a specialist for rubber technology in the non-tire rubber sector. It develops and produces functional parts, components and systems for the automotive industry and other important industries.
"The acquisition is perfectly in line with our growth strategy," said ContiTech CEO Heinz-Gerhard Wente. "Parker has an excellent presence among the American and Japanese automotive manufacturers and will open additional doors for us in Asia. After the acquisition, we will also become a worldwide partner for manufacturers such as Ford, GM and Honda."
PH is trading down 0.84% at $82.77 on Monday. The stock has been trading between $59.26 and $91.47 for the past 52 weeks.