FRANKFURT (Reuters) - Germany’s Continental AG (CONG.DE) sold its electric motor devices business and another unit to peer Brose, in a deal which an industry source said was worth a total of 250 million euros ($359.2 million).
The electric motor devices business was acquired by Continental when it bought Siemens’ (SIEGn.DE) automotive electronics unit VDO earlier this month. Brose also bought Continental’s cooling fan business.
“The transaction comprises the business with electric motors for window regulators, anti-lock braking systems (ABS/ESC), heating/ventilation, engine cooling and electric power steering,” the statement said.
Hybrid activities were not included.
“We decided to sell the former Siemens VDO Electric Motor Drives operations and Continental’s cooling fan business to the Brose Group because Brose’s excellent positioning in the market segment creates exceedingly good prospects for that business,” Continental Chief Executive Manfred Wennemer said.
He said VDO had already started exploring a deal along those lines before Continental bought the business in an 11.4 billion euro acquisition that closed only this month.
In all, Continental employs around 4,200 in its electric motor operations, which will have sales this year of 740 million euros, it said.
Brose is a leading manufacturer of window regulators, door systems and seat adjusters. It is also the world’s biggest buyer of electric motors, acquiring more than 70 million units a year.
Continental shares, which had risen earlier on Thursday on a newspaper report on the impending Brose transaction, were up 3.3 percent at 86.99 euros by 1556 GMT, the leading gainer among German blue chips .GDAXI.
The sale to Brose requires anti-trust approval.
Reporting by Michael Shields; Editing by David Holmes