Bosch to Buy AlliedSignal's Brake Making Outfit

03/04/96

Reuters reported that the German Company Bosch will buy AlliedSignal's light vehicle hydraulic and anti-lock brake making business for $1.5 billion in cash. The brake making part of AlliedSignal's operations accounted for $2.1 billion of the $14.3 billion in sales that AlliedSignal reported in 1995. AlliedSignal retains their other businesses, which include friction materials, turbochargers, seat belts, air bags, filters, spark plugs, and air brakes and anti-lock brake systems for heavy-duty trucks

The sale is not yet final, as it it is subject to European Union and U.S. antitrust reviews, but AlliedSignal's Chief Executive Lawrence Bossidy hopes to have the sale closed by April 1.

AlliedSignal lost $20 million on conventional and anti-lock braking systems last year. They began discussing a joint venture with Bosch six months ago, but then decided it would be more advantageous for one company to own the the operations, outright. Bosch is buying 24 production facilities employing about 11,000 people, primarily in the United States, France, Spain, Italy, Poland, Mexico, Brazil, Turkey and Portugal. Bosch currently boasts annual sales of $25 billion and employs 154,000 workers worldwide.

Paul Dever -- The Auto Channel