Behr will assume operational responsibility while Chrysler will maintain a minority interest for two years to assist in the transition, company officials say.
Over the next three to five years, Behr it plans to expand the line products manufactured in the Dayton facility.
Dayton Thermal Products is a production plant manufacturing heating, ventilation and air conditioning modules, evaporators, engine cooling modules, vapor canisters, PCV valves and service parts. These products are found in a variety of Chrysler models, such as the Chrysler and Dodge Neon, Chrysler PT Cruiser, Jeep, Grand Cherokee and Dodge Ram.
The 1.1-million-sf facility was built in 1915 with a major addition in 1969.
"The acquisition of Dayton Thermal is a significant milestone in our company history," says Horst Geidel, Behr America Inc. chairman and chief executive officer. "With DTP, we will exceed a market share of 10% for climate control and engine cooling productsin the United States."
As a result of the DTP joint venture, Chrysler Group will retain a minority ownership for the first two years. Behr will have operational responsibility for the facility while Chrysler Group will continue to work with Behr to assure the successful transition of the business over the two-year time frame.
After that time, Behr will assume full ownership.
"As part of our turnaround plan, we've said that if we were to sell a component operation, it must meet two requirements -- that it makes good business sense and it makes good people sense," says Chrysler group president and chief executive officer Dieter Zetsche. "Specifically for the Chrysler Group, the sale of DTP enables us to dedicate even more resources towards what we do best -- focusing on our core business of creating innovative cars and trucks that set us apart from the competition."
Behr's new Dayton site already has substantial orders in the pipeline. Behr will supply cooling modules for different US customers.
"We needed additional plant capacities for our new business," says HansLange, Behr America president.
Neither Chrysler nor Behr divulged the purchase price. The transaction is expected to close prior to March 31, and is subject to receiving all required governmental approvals.
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