ANN ARBOR, Mich. (April 18, 2005) — Affinia Group Inc. has sold its Beck/Arnley Worldparts Corp. subsidiary to Heritage Equity Group Inc., a privately held firm funded by private investors and Beck/Arnley management.
Terry McCormack, Affinia's president and CEO, called the move beneficial to both his company and Beck/Arnley, a distributor of aftermarket automotive parts. “Affinia's customers, investors and associates will be better served through focus on our primary lines, brakes, chassis and filtration, which we manufacture and market,” he said.
Beck/Arnley's business made it different from the rest of Affinia, Mr. McCormack continued. “With the Wix, Raybestos and Spicer brands, we are manufacturers and marketers of vertical product lines. Beck/Arnley buys and sells a horizontal package of import parts that cuts across many product categories. It's a fundamental difference, and it creates different needs that are better served separately.”
Max Dull, formerly vice president and general manager of the subsidiary, has become president and CEO of Beck/Arnley. He said the sale will allow the company to control its own destiny, allowing “Beck/Arnley to be Beck/Arnley.” Manny Angues, who served as controller of the subsidiary, is now vice president and CFO. “As a private company we are not required to report our financials,” he said, “but I am proud to say that our debt-to-equity ratio is extremely strong. We are in a solid financial position that will enable us to invest in the business moving forward.”
Mr. Angues said the company plans to “grow the business by supplying replacement parts with the same form, fit and function of the original parts. This is an absolute necessity to compete in the growing market for import replacement products.”
Beck/Arnley will maintain its master distribution center and headquarters in Smyrna, Tenn., as well as its network of six branch locations around the country.