The transaction, financed with an equity increase and existing cash reserves, is expected to be closed during the first half of 2009.

The acquisition, says Bienes Turgon, offers Katcon the opportunity to become a world leader in the automotive exhaust systems industry through state-of-the-art technology and manufacturing capabilities. Following the acquisition, Katcon will be able to service customers with a range of products covering exhaust system components to complete exhaust systems, including catalytic converters, particulate filters, oxidation catalyst assemblies, hot and cold-end modules, and mufflers for diesel, hybrid and petrol applications.

The post acquisition Katcon will have a manufacturing footprint encompassing facilities in Mexico, Venezuela, Poland, China, Australia, India, and South Africa. This global network of facilities, says the company, will allow it to competitively supply developed markets as well as to take advantage of the expected accelerated automotive growth in developing nations. A further boost comes courtesy of the acquisition of leading technical and engineering capabilities, intellectual property, and R&D centres in the U.S. and Luxembourg, as well as engineering and manufacturing experience.

Upon announcing the acquisition, Bienes Turgon acknowledges that these are challenging times, but in confident of success in spite of this. “The world’s short-term economic and automotive industry outlook is very complex but we are confident that under this scenario opportunities can be found to reach higher goals and frontiers,” the company said in a statement. (Tyres & Accessories/Staffordshire, U.K.)