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Affinia spins off brake parts group

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ANN ARBOR, Mich.—Affinia Group Inc. has spun off its brake businesses in North America and Asia—which operates as Brake Parts Inc. (BPI), maker of Raybestos brake products—to a group that includes the subsidiary's management team.

Terms for the deal, which closed Nov. 30, were not disclosed. The business, which will continue to operate as BPI, has generated annual sales in the past of about $675 million, Affinia said earlier this year.

BPI will be led by the management team from Affinia's former Global Brake group, with oversight provided by a separate board of directors, Affinia said.

David Overbeeke, former president of Affinia's Global Brake and Chassis Group, will head BPI, which will continue to have its headquarters in McHenry, Ill.

The spinoff includes all North American and Asian assets and personnel, including two plants in the U.S., two in China and one in India.

Affinia disclosed in March it was evaluating options to divest the brake-related businesses, including the sale of all or a portion of the businesses. Brake systems accounted for about one-third of Affinia's sales, but they contributed to a $113 million operating loss in fiscal 2011 as “discontinued operations.” Affinia had acquired BPI from Dana Corp. in 2004.

In its third quarter 10Q filing with the Securities and Exchange Commission, Affinia said it had determined that the “net carrying value of the Brake North America and Asia group may not be recoverable through the sales process.”
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