China's AVIC to buy U.S. supplier of vehicle sealants
State-owned Aviation Industry Corp. of China, or AVIC, has agreed to acquire Henniges Automotive Holdings Inc., a suburban Detroit supplier of sealants and anti-vibration materials, The Wall Street Journal reported.
Littlejohn & Co., the private-equity owner of Henniges, put the company up for sale last year. Regulatory approval for the $800 million acquisition is expected soon, the newspaper reports.
In 2014, Henniges generated global sales of $825 million (5.1 billion yuan). Although the company's China sales were unavailable, Henniges has been active in that market.
Last year, Henniges acquired the 40 percent it didn't own in Beijing Wanyuan-Henniges Sealing Systems Co., its Chinese joint venture with China Academy of Launch Vehicle Technology.
Wanyuan-Henniges employs more than 1,500 people to design, develop and manufacture sealing products. Customers include FAW-Volkswagen Automobile Co., FAW Car, Dongfeng Peugeot Citroen Automobile Co. and Shanghai Volkswagen Automotive Co.
If AVIC acquires Henniges, the deal would be the largest U.S. automotive acquisition by a Chinese company, The Wall Street Journal reports, citing Dealogic data. But it would not be AVIC's first U.S. deal.
AVIC also owns a stake in Nexteer Automotive Group, a Saginaw, Mich.-based supplier of steering components. Nexteer, formerly an in-house supplier for General Motors, was spun off in 2010.
In 2014, Henniges generated global sales of $825 million (5.1 billion yuan). Although the company's China sales were unavailable, Henniges has been active in that market.
Last year, Henniges acquired the 40 percent it didn't own in Beijing Wanyuan-Henniges Sealing Systems Co., its Chinese joint venture with China Academy of Launch Vehicle Technology.
Wanyuan-Henniges employs more than 1,500 people to design, develop and manufacture sealing products. Customers include FAW-Volkswagen Automobile Co., FAW Car, Dongfeng Peugeot Citroen Automobile Co. and Shanghai Volkswagen Automotive Co.
If AVIC acquires Henniges, the deal would be the largest U.S. automotive acquisition by a Chinese company, The Wall Street Journal reports, citing Dealogic data. But it would not be AVIC's first U.S. deal.
AVIC also owns a stake in Nexteer Automotive Group, a Saginaw, Mich.-based supplier of steering components. Nexteer, formerly an in-house supplier for General Motors, was spun off in 2010.
