Niterra has sold the automotive aftermarket business of Wells Vehicle Electronics to Omega Holdings, a portfolio company of Olympus Partners
Wells Vehicle Electronics Aftermarket Business
The aftermarket business of Wells is a long-established manufacturer of automotive components with over a century of experience in the United States, offering a wide range of products including switches, ignition coils and pressure sensors for the repair parts market.
The Deal
Niterra Co., Ltd. (Niterra), a leading global spark plug manufacturer, acquired Wells in 2015, aiming to strengthen its automotive business by leveraging the global sales network to expand sales of Wells’ products. However, amid an increasingly challenging environment surrounding the U.S. automotive aftermarket, it became difficult to realize the earnings and synergies initially expected from the acquisition. As part of its efforts to optimize its business portfolio under its Mid-Term Management Plan 2030, Niterra decided to withdraw from Wells’ aftermarket business. With in-depth industry insights and connections with strategic acquirers in the challenging yet consolidating industry, Lincoln successfully assisted Niterra in identifying the best owner of the business who is expecting to generate strong synergies.
Our Perspective
Tetsuya Fujii, Managing Director & Head of Japan, commented, “We are seeing more and more Japanese conglomerates pursue corporate carve-outs to realign business portfolios. With our strong industry knowledge and track record, Lincoln will continue to help large Japanese corporate execute the realignments.”
Niterra Co., Ltd.
Founded in Nagoya, Japan in 1936, Niterra Co., Ltd. (formerly NGK SPARK PLUG CO., LTD.) is a global manufacturer renowned for its NGK-branded spark plugs and NTK-branded ceramic products. The company has expanded its business beyond spark plugs and ceramics into areas including sensors, semiconductors and medical care.
Omega Holdings
Omega is a leading U.S. distributor of aftermarket automotive, heavy-duty truck, off-road, bus and agricultural air conditioning products. Omega carries a complete line of compressors, evaporators, condensers, expansion valves, receiver drier, hose, fittings and systems.
Olympus Partners
Founded in 1988, Olympus Partners is a private equity firm focused on providing equity capital for middle market buyouts and for companies needing capital for expansion. Olympus is an active, long-term investor across a broad range of industries including business services, consumer products, healthcare services, financial services, industrial services and manufacturing. Olympus manages funds in excess of $12 billion mainly on behalf of corporate pension funds, endowment funds and state-sponsored retirement programs.
Meet our Senior Team
Related Perspectives
Any information or testimonials contained in this post may not be representative of the experience of other clients and is no guarantee of future performance or success.