Federal-Mogul buys Beck/Arnley

[stephen9666]

Hopefully not a repost. I searched and didn't find any posts.

This actually happened in December:
http://investor.federalmogul.com/phoenix...08#.WIL6MbVOKEc

FM says, at least for now, BA will continue to have its own team and distribution based out of Tennessee.

Quote:
SOUTHFIELD, Mich., Dec. 05, 2016 (GLOBE NEWSWIRE) -- Federal-Mogul Motorparts, a division of Federal-Mogul Holdings Corporation (NASDAQ:FDML), today announced the acquisition of the Beck/Arnley brand and certain associated assets. Based in Smyrna, Tenn., Beck/Arnley is a leading provider of premium OE quality parts and fluids for foreign nameplate vehicles in North America. The announcement marks a significant product line expansion that is consistent with Federal-Mogul Motorparts’ strategy to deliver the broadest range of high quality products to the global independent aftermarket.

The acquisition, which is effective immediately, adds several complementary product lines to the Federal-Mogul Motorparts product portfolio, such as Beck/Arnley fluids, engine management, cooling, electrical parts and electronic components. In addition, the acquisition adds additional foreign nameplate coverage to Federal-Mogul Motorparts’ current offerings. To ensure continued operational excellence, Beck/Arnley will maintain its own team and independent distribution organization in Smyrna.

“We welcome the employees of Beck/Arnley to the Federal-Mogul Motorparts team. With this acquisition, we’re adding a recognized and successful foreign nameplate brand to Federal-Mogul’s existing globally-recognized brand portfolio,” said Paul Stanecki, vice president, quality & aftermarket solutions, Federal-Mogul Motorparts. “We’re also adding a nimble, successful organization to our own, which will help us continue to meet the needs of automotive service providers, who will now benefit from the addition of well-respected Beck/Arnley products to Federal-Mogul Motorparts’ extensive product portfolio. Federal-Mogul Motorparts also brings its research and development, engineering, global sourcing, sales and marketing capabilities to the table, which we believe will expand Beck/Arnley’s reach and presence in the market.


“Through the combination of our two organizations, our customers will now have streamlined access to OE-pedigree parts from Federal-Mogul Motorparts’ global operations, thus expanding and strengthening Beck/Arnley’s OE quality product offerings which are so critical to the foreign nameplate market,” Stanecki added.

 

[WhizkidTN]

Just as long as those jobs stay in TN and they produce a quality product, I'm a happy camper.

 

[HerrStig]

Perhaps a bit less likely they'll decamp to China now, but we'll see. They sourced good stuff, by and large.

 

[Trav]

They have been going down hill a while now, selling reboxed URO parts and other really cheesy Chinese parts isn't a good sign. Its a 50/50 with them.
One time you get lucky and get a steal of a deal on an OE part the next time you get the friggin zonk, its like buying door number 2.

 

[NormanBuntz]

I don't see this purchase helping Federal-Mogul's bottom line very much. Its current P/E ratio is more than 83. Seems like a sinking ship though stock analysts are bullish on the company.

I've used B/A over the years because they tend to supply the indie parts stores where I've lived in PA, VA and NC. As a "private label" parts repackager, I never had a problem with any of its parts.

 

[SEBZX79]

FDML is owned 90% by Carl Icahn. There was a tender offer for rest of the shares at 10 bucks a share. It will go private shortly and hopefully stay American especially now.