Johnson Electric says to buy auto parts maker Stackpole for $659 million
HONG KONG (Reuters) - Johnson Electric Holdings Ltd (0179.HK: Quote) said on Tuesday it would buy Ontario-based automotive engine and transmission pumps maker Stackpole International for C$867 million ($659 million) in a bid to increase its business in North America.
The Hong Kong-listed electric motor maker said it was buying Stackpole from S.I. Investors, L.P. and would finance the purchase with cash reserves and credit facilities.
Stackpole's pump technology and powder metal expertise will enable the Johnson Electric to provide integrated motorized pump solutions to customers in the automotive industry, it said.
Last month, Johnson Electric said sales for the quarter ended 30 June 2015 were $526 million, a drop of $22 million from the same quarter last year.
(Reporting by Donny Kwok; Editing by Miral Fahmy)
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