Mahle Gmbh Acquires Clevite Mexico Sa De Cv

Acquisition Overview

Mahle GmbH, a leading German automotive supplier, has officially acquired Clevite Mexico SA de CV (Clemex) and its subsidiaries.

Founded in 1959, Clevite de Mexico is recognized as Mexico’s largest manufacturer of engine water pump bearings, bushings, and gaskets under the well-known Clemex brand.

The acquisition is part of Mahle’s ongoing strategy to expand its global presence and reinforce its North American bearings operations. Beginning in 2009, the company will be fully integrated into Mahle and renamed Mahle Mexico.

About Clevite Mexico

• Established: 1959

• Headquarters & Plant Location: Lerma, Mexico

• Products: Engine water pump bearings, bushings, gaskets

• Certifications: ISO9002 and QS9000

• Key Customers: GM, Ford, Chrysler, Mercedes, Nissan, plus a strong global aftermarket presence

• 2007 Sales: Approx. USD $17 million

• Employees: Around 400

Clevite Mexico has played a significant role in the automotive industry, not only as a trusted manufacturer but also through leadership.

Company president Ricardo Vidale participated in the original NAFTA negotiations and continues to engage in free trade discussions across Central and South America.

Clevite’s Legacy and Mahle’s Expansion

Clevite Mexico was once part of the Clevite Needle Ball Bearings organization. Over time, spinoffs and acquisitions led much of the Clevite business under Mahle’s control, particularly its Clevite-branded products. Another major portion of Clevite is currently owned by Daido.

In 2006, Mahle acquired the Clevite bearing business from Dana. At the time, Mahle emphasized the need for restructuring due to challenges faced by Dana’s engine bearing plants.

Restructuring in the U.S. Market

Earlier in 2008, Mahle announced it would close its underutilized thin-wall high-speed bearings plant in Caldwell, Ohio by the end of 2009, affecting about 330 employees.

Commenting on the decision, Dan Moody, Mahle’s Bearing Product Group VP, said: “A decision to close an operation is an extremely difficult one, and we regret the impact upon our affected employees. However, this is a necessary strategic business decision that will realign our investment and capacity to enhance the long-term competitiveness and performance of our bearings business.”

Mahle’s Strategic Outlook

On the acquisition of Clevite Mexico, Heinz Junker, Mahle’s Management Board Chair, stated: “This acquisition allows us to complete the restructuring of our U.S. bearings business and will significantly improve our North American bushings business. It gives us a platform for further growth in the North American light-duty engine bearings market as a producer of high-quality products at reasonable costs.”

While Mr. Junker did not elaborate on how Clevite Mexico’s operations will integrate with Mahle’s other U.S. thin-wall bearing facilities, the acquisition clearly positions Mahle to expand its North American footprint and boost competitiveness in the global bearings market.