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Cooper Standard (CPS) to Divest AVS Business to Continental

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Cooper-Standard Holdings Inc. (CPS - Free Report) announced that it has reached an agreement to divest its anti-vibration systems (“AVS”) business to the German automotive manufacturing company, Continental AG. The aim of Cooper-Standard is to become a leading global manufacturer across its core product lines.

Continental AG has made a binding offer to purchase considerably all of Novi, MI-based Cooper-Standard’s anti-vibration business in France and its interest in the joint venture in India. The agreement is likely to be signed in the next few weeks. The closing of the divestiture is however subject to necessary approvals of the antitrust authorities and others.

Cooper-Standard is engaged in designing, manufacturing and selling of sealing, fuel, and brake delivery along with fluid transfer and anti-vibration systems.

In third-quarter 2018, Cooper-Standard reported adjusted earnings per share of $1.05, missing the Zacks Consensus Estimate of $2.50. Further, the bottom-line figure was lower than the year-ago quarter’s figure of $2.11 per share.

Results in the reported quarter were impacted by challenging market conditions in Asia and Europe, and rising commodity costs.

The AVS business of Cooper Standard has around 1,000 employees. It offers a comprehensive portfolio of anti-vibration systems, technologies and products to automotive OEMs that mitigate vehicle noise, vibration and harshness, and enhance ride and handling.

Cooper-Standard belongs to the Auto sector. A few other stocks in the auto space are Allison Transmission Holdings, Inc. (ALSN - Free Report) , Advance Auto Parts, Inc. (AAP - Free Report) and AutoZone, Inc. (AZO - Free Report) . Allison Transmission, Advance Auto Parts and AutoZone have expected long-term growth rates of 10%, 12.3%, and 12.2%, respectively.

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