Hayes Lemmerz International and Brembo on Friday announced the sale of Hayes Lemmerz’ automotive brake components division to Brembo North America.

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The division includes production facilities in Homer, Michigan and Apodaca, Mexico that manufacture brake rotors and drums for the North American passenger car and light truck markets. The division employs approximately 250 people, including 64 technical associates. The division’s 2006 sales were approximately $US120m.


Under the agreement announced today, Brembo North America has acquired all of the stock of two Hayes Lemmerz subsidiary companies that own the brake manufacturing operations in Homer and Apodaca and assets used in connection with the division’s sales, marketing and engineering group located in Hayes Lemmerz’ headquarters in Northville, Michigan.


The amount of the transaction is approximately $58m, debt-free.


According to Daniel Sandberg, president of the automotive components group, “Combining this business with an international, technically dynamic brake company like Brembo will better position the combined company to grow and compete in the global market.”

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Brembo already has a strong presence in the NAFTA region with 2006 sales of approximately $ 140 million.


“Our purchase of Hayes Lemmerz’ rotor business will greatly improve Brembo’s leadership position in the North American brake rotor market.  We continue to believe that North America, as a mature and sophisticated market, is one of the most important in the world which fits well with Brembo’s strategic position. This transaction will provide Brembo with a solid manufacturing base to supply all the North American operations of all of our customers,” chairman Alberto Bombassei said.