Textron considering sale of Kautex fuel tank maker

US industrial firm Textron Inc., which owns Germany-based Kautex, says that it is reviewing strategic alternatives for the business unit. Textron plans to consider a range of options, including a sale, tax-free spin-off or other transaction. Kautex operates over 30 plants in 14 countries and generated over US$2.3 billion in revenue in 2018. It is said to be one of the 100 largest automotive suppliers in the world in terms of sales volume.

Kautex, headquartered in Bonn, is a manufacturer of blow-moulded plastic fuel systems for cars and light trucks, including pressurised fuel tanks for hybrid applications. The unit also develops and manufactures camera/sensor cleaning solutions for automobiles, selective catalytic reduction systems used to reduce emissions from diesel engines as well as produces cast iron engine camshafts, crankshafts and other engine components.

Kautex is not to be confused with the blow moulding machine maker Kautex Maschinenbau GmbH, which has been separate from the business since 1977 and is not owned by Textron.

“Kautex is a leading Tier One supplier to global OEMs. It has a long history of product innovation, world-class operations and strong financial performance,” said Scott C. Donnelly, Textron Chairman/CEO. “We are exploring strategic alternatives to see how we can position Kautex to best serve its customers for ongoing success while simultaneously unlocking potential value for our shareholders.”

No decision has been made and there can be no assurance that the process will result in any transaction being announced or completed in the future. The company says it has not set a definitive timetable for completion of its review of strategic alternatives and does not intend to make any further announcements related to its review unless and until its Board of Directors has approved a specific transaction or the company otherwise determines that further disclosure is appropriate.

Textron has retained Goldman Sachs & Co. LLC as financial advisor to assist in its review.

Textron’s network spans aircraft, defense, industrial and finance businesses with brands such as Bell, Cessna, Beechcraft, Hawker, Jacobsen, Kautex, Lycoming, E-Z-GO, Arctic Cat, Textron Systems, and TRU Simulation + Training.

(PRA)

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