Cooper-Standard to Divest Indian, Some European Businesses

Automotive supplier Cooper-Standard Holdings will divest its European rubber fluid transfer and specialty sealing businesses, as well as its Indian operations, to Germany-based holding company Mutares SE & Co.

The agreement includes about 2,500 employees and two manufacturing facilities in Poland, one manufacturing site in both Spain and Italy, and all of Cooper-Standard’s operations in India, comprising seven production plants but excluding its corporate IT development office located in Chennai.

Completion of the divestiture is subject to antitrust authorities’ approval and is expected to be finalized by the end of second-quarter 2020.

Northville, MI-based Cooper-Standard is a global supplier of sealing, fuel and brake, and fluid transfer systems for transportation and industrial markets.

“This transaction, when closed, will enable us to focus company resources on our businesses that provide the greatest opportunity for growth and profitability,” says Jeffrey Edwards, Cooper-Standard chairman and CEO. “It is consistent with strategic initiatives that we have discussed for the past several quarters, and we expect it will be immediately accretive to our earnings and cash flows going forward.”

Auto suppliers worldwide have sought to improve cash flow as revenues are squeezed by the COVID-19 pandemic.

Cooper-Standard employs about 28,000 people globally and operates in 21 countries around the world.

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