Textron says it is reviewing alternatives for its Kautex business unit, which produces fuel systems and other functional components.
Textron plans to consider a range of options, including a sale, tax-free spin-off or other transaction. Kautex operates more than 30 plants in 14 countries and generated US$2.3bn in revenue in 2018.
Kautex, headquartered in Bonn, Germany, is a developer and manufacturer of blow-moulded plastic fuel systems and fuel systems for cars and light trucks, including pressurised fuel tanks for hybrid applications.
The unit also develops and manufactures camera/sensor cleaning solutions for cars, selective catalytic reduction systems used to reduce emissions from diesel engines as well as producing cast iron engine camshafts, crankshafts and other engine components.
“Kautex is a leading Tier One supplier to global OEMs,” said Textron chairman and CEO, Scott Donnelly.
“It has a long history of product innovation and strong financial performance. We are exploring alternatives to see how we can position Kautex to best serve its customers for ongoing success while simultaneously unlocking potential value for our shareholders.”
No decision has been made and there can be no assurance the process will result in any transaction being announced or completed in the future.
The company has not set a definitive timetable for completion of its review of alternatives and does not intend to make any further announcements related to its review unless and until its board has approved a specific transaction or the company otherwise determines further disclosure is appropriate.
Textron has retained Goldman Sachs & Co as financial advisor to assist in its review.