NOVI, MICH. — Cooper Standard Holdings Inc. has agreed to buy an additional 47.5 percent of Huayu-Cooper Standard Sealing Systems Co. Ltd., its joint venture with Huayu Automotive Systems Co., and become the 95 percent equity owner of the business.
Cooper Standard said the acquisition would make it the largest automotive sealing manufacturer in the domestic Chinese market.
The deal is scheduled to close in early 2015 and is subject to Chinese regulatory and other approvals, Cooper Standard said. If approved, Cooper Standard Automotive Inc. will have nine manufacturing facilities and two technical centers in China. The deal has a price tag of $60 million, Huayu said in a statement.
Cooper Standard said the joint venture reported 2013 sales of $187 million. The remaining 5 percent will be retained by the Shanghai Zhaotun Collective Assets Managing Co.
“This transaction is an important element in our growth strategy and positions Cooper Standard as the clear leader in sealing and trim systems in the China automotive market,” Jeffery Edwards, Cooper Standard chairman and CEO, said in a statement.
“With this purchase, Cooper Standard will be able to better support our customers on global platforms produced in China, as well as capitalize on growth opportunities with domestic Chinese auto makers.”
The deal comes on the heels of two other major moves for Cooper Standard in the Asia-Pacific. The firm announced its intention to form a joint venture with Inoac Corp. of Japan to expand the reach of its fluid transfer systems products. The deal is expected to close in the third quarter, with Cooper Standard owning 51 percent of the new firm — Cooper Standard Inoac Pte. Ltd.
Cooper Standard also opened its Asia-Pacific technical center in Shanghai. It is in the process of relocating employees from its Asia-Pacific headquarters in Kunshan, China, to the new Shanghai facility. Kunshan is about 35 miles west of Shanghai.
Headquartered in Novi, Cooper Standard employs more than 25,000 and operates in 19 countries.