Auto parts manufacturer Federal-Mogul Corporation has an agreement to buy DZV Bearings Company, a privately owned Russian producer of bearings, bushings, and thrust washers it supplies to commercial vehicle and industrial engine OEMs. The agreement, subject to closing conditions and regulatory approval, will close early Q1 2014, according to Federal-Mogul.
The Michigan-based company declined to indicate the value or other terms of the purchase. It said the transaction would be executed by its foreign subsidiary, Federal-Mogul Investments, B.V.
DZV Bearings has 375 employees at a plant in Dmitrovgrad, where it lists bronze casting, stamping, machining, electroplating, and packing capabilities. Nearly 80% of its products are sold as aftermarket parts, but also lists Avtovaz, GAZ, Kamaz and several other producers of commercial vehicle, military, and industrial engine builders among its customers.
Federal-Mogul, which operates in 34 countries, has two separate business units, Federal-Mogul Powertrain and Federal-Mogul Vehicle Component Solutions. Each one has a CEO that reports to the board of directors.
Federal-Mogul's Powertrain business designs and manufactures powertrain components and systems protection products for automotive, heavy-duty, industrial, and transport applications. It has two plants in Russia, one at Naberezhnye Chelny that produces pistons, piston rings and liners, and another at Togliatti that produces pistons.
"The acquisition of DZV will expand Federal-Mogul's strong global position in the engine bearings market and provides an excellent growth platform to increase our presence in the commercial vehicle and industrial engine market in Russia, Central, and Eastern Europe," according to Richard Llope, senior vice president, Bearings.
