ITT Tests Brakes with Wolverine Advanced Materials
ITT Corp. (NYSE: ITT) is buying automotive brakes manufacturer Wolverine Automotive Holdings Inc. for $300 million in cash.
Wolverine, founded in 1934, makes sealing and coated metals that are mostly used in automotive brakes. The target expects to finish 2015 with around $38 million in adjusted Ebitda with $180 million in revenue. ITT makes metal parts for the energy, transportation and industrial sectors. The acquisition of Wolverine will expand ITT’s presence in the automotive category.
“While this transaction will broaden ITT’s offering to customers, it also will give both companies new opportunities to strengthen design, testing and performance capabilities,” says Luca, Savi, president of ITT’s Motion Technologies business. ITT will fund the purchase with from cash on hand and debt.
Automotive deals have been picking up in 2015. Other transactions include: Old World Industries LLC, the maker of Antifreeze Coolant and Motor Oil, buying the automotive lighting business of Eiko Global LLC; Watermill Group purchasing metal parts maker Quality Metalcraft Inc.; and Clearlake Capital Group adding car interior parts manufacturer CNI Enterprises Inc.