Following Federal-Mogul‘s Oct. 1 acquisition of the BERU spark plug business, the company announced recently that it has entered into an additional agreement with BorgWarner BERU Systems GmbH to serve as the exclusive global independent aftermarket distributor of the remaining BERU ignition products. Federal-Mogul also will become the exclusive licensee of the BERU brand name for the sale of ignition products in the aftermarket. The transaction is pending customary closing conditions including approval of competition authorities.
As a result of the new agreement, Federal-Mogul will sell and distribute in the automotive aftermarket BERU glow plugs, flame glow plugs, glow controllers, connectors and components, ignition wires, sensors and coils. The BERU glow plug product line is recognized as a market-leading diesel ignition technology, particularly in Europe. BorgWarner will continue to design, develop, manufacture and sell these BERU ignition products directly to customers in the original equipment assembly and original equipment service markets.
"This agreement further demonstrates Federal-Mogul’s commitment to attain a leading market position for ignition products in both the original equipment and aftermarket segments," said Michael Broderick, Federal-Mogul co-CEO and Vehicle Components Segment CEO. "BERU and Champion possess a complementary product range, each with strong brand awareness in automotive and industrial markets. Like Champion, BERU has been a trusted brand in the marketplace for 100 years, and the BERU ignition product line is an excellent fit with our Champion aftermarket ignition product portfolio. This agreement will enable aftermarket distributors and repair professionals to have one-stop access to one of the world’s most extensive catalogs of ignition products."
To facilitate the Champion and BERU ignition product catalog integration, Federal-Mogul will consolidate its aftermarket ignition products distribution for the EMEA region into a modern, centrally located distribution center in Ludwigsburg, Germany. The consolidated distribution center will provide improved operations and customer service efficiency by fulfilling orders from a single location.
"With the October 1, 2012, acquisition of BERU’s spark plug business and this new license and aftermarket distribution agreement effective January 1, 2013, for all remaining BERU ignition products, the Federal-Mogul ignition portfolio brings new scale and choice to our large European aftermarket customer base," said Broderick. "These are strategic investments in growing our ignition product portfolio, which will make a broader range of quality ignition products available to our aftermarket customers."
