Global Automotive News: RGI Assists in Creating The Largest Manufacturer of Brake Hoses in the World

1 April 1998
Global Automotive News: RGI Assists in Creating The Largest Manufacturer of Brake Hoses in the World

    DETROIT, April 1 - RGI, an international marketing, strategic
alliance, and merger & acquisition firm based in Troy, Michigan, has recently
brokered a global transaction resulting in the creation of the world's number
one producer of automotive brake hoses.  RGI, as the representative of the
northern Italian company C.F. Gomma Sp.A., facilitated the successful
divestiture of the Weatherhead Brake Hose Division.  While the actual deal was
signed in escrow in early February, the transaction was just recently
consummated with the approval of the UAW.
    C.F. Gomma, a leading manufacturer of air springs, brake hoses and anti-
vibration components based in Brescia, Italy, has expanded its business to
become a top-rate global supplier to Original Equipment Manufacturers (OEMs).
C.F. Gomma experienced exponential growth in the last five years, following
its acquisition of Pirelli's brake hose unit in 1993 (a former division of
Pirelli Tire).  C. F. Gomma operates with factories in Italy, Poland, Turkey,
China, India, Brazil and Argentina.  After acquiring Weatherhead, C. F. Gomma
has plants in the U.S. (Columbia City, Indiana) and Germany (Garching) C. F.
Gomma, via a licensing agreement, continues to produce many of its products
under the "Pirelli" brand name.
    Weatherhead Brake Hoses, formerly a division of the Dana Corporation
(Toledo, Ohio), posted approximately $86 million in sales last year.
Weatherhead U.S.A., and its affiliate company in Germany, Weatherhead GmbH,
have an established supply relationship with OEMs such as Ford, General
Motors, Chrysler and OPEL.  "While Weatherhead originally anticipated a slow-
down due to a change in the purchasing environment at Ford, it now expects its
business to grow markedly as a result of C.F. Gomma's involvement.  C.F. Gomma
adds several other OEMs to the potential client list of Weatherhead on a
worldwide basis.  These OEMs include Toyota, Fiat, Volvo, Iveco and VW.
    RGI's President & CEO, Antonio J. Soave, said, "C.F. Gomma, through this
acquisition, should obtain a market share of nearly 18% in 1998.  This is the
largest share worldwide, followed by Delphi and Toyoda Gosei, each with a 12%
share globally."  C.F. Gomma's sales are expected to top $270 million this
year, with its largest customer base in Central and South America.

SOURCE RGI