"The spinoff of our brake business represents a strategic realignment for Affinia, offering us an opportunity to focus intensely on our filtration and chassis product lines and our South American business operations, while giving the new Brake Group, led by David Overbeeke, the ability to concentrate on the needs of the global brake market," said Terry McCormack, president and CEO of Affinia Group.
The sale includes all of the brake businesses in North America and Asia. The newly spun-off business will be called Brake Parts Inc., and will be headquartered in McHenry, Ill. Earlier, the company had reported that the business will be called Brake Parts International, but it is actually Brake Parts Inc., according to Scott Howat, director, corporate communications for Affinia Group.
The company first announced in March that it retained J.P. Morgan Securities LLC as its investment bank to advise and assist the company in evaluating strategic alternatives for its brake related businesses, which include the Raybestos and Aimco brands.
Closing of the spinoff occurred on Friday, Nov. 30. Terms were not disclosed.