UCI Holdings Limited (“UCI”), the parent company of UCI International, Inc., announced today that it has entered into an agreement to sell its Wells vehicle electronics business to NGK Spark Plug Co, Ltd. for approximately $257 million. Wells is a leading supplier to the U.S. market and offers components such as switches, ignition coils and pressure sensors mainly to the automotive aftermarket.
The transaction is expected to close early in the third quarter of 2015, pending final regulatory approvals and the satisfaction of other customary closing conditions.
NGK said it has the top global share in spark plugs in the automotive and other markets. NGK said it strives to keep its automotive components business as its core business. In order to further strengthen the automotive components business, NGK said it has been pursuing various opportunities, including expanding both the product line-up and improving its penetration in various distribution channels.
NGK said Wells is an ideal candidate for its expansion efforts because it is a well-known automotive parts manufacturer with more than 100 years of history in the United States. Wells has exposure to the growing segment of vehicle electronics with broad product lines, whose main products include switches, ignition coils and pressure sensors. Wells has built a leading position in the US automotive repair market and is working to increase its sales outside of the U.S.
NGK said that the combination of the two companies will create significant synergies, including offering Wells products, in addition to its own products, to the global repair market through its strong international sales network. This combination will further strengthen NGK’s automotive components business, and also will keep challenging the company to create new businesses, the company said.
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