Turnspire to acquire STEMCO Air Springs business of EnPro Industries

Turnspire Capital Partners, a special situations-focused private equity firm, has agreed to acquire US industrial conglomerate EnPro Industries’ STEMCO Air Springs business unit, which manufactures Goodyear-licensed air springs, and also Super Cushion and Spring Ride air springs.

EnPro Industries will be paid $32.0 million in cash and also a long-term promissory note with a face value of $7.5 million that will be stated at fair value.

Marvin Riley – President and CEO of EnPro Industries said: “The sale of STEMCO’s Air Springs business marks a significant milestone in our portfolio reshaping effort within STEMCO and significantly reduces EnPro’s exposure to the commercial vehicle and heavy-duty truck markets.

“Over the past year, we have conducted an extensive review of our portfolio of companies to identify businesses and product lines that are no longer aligned with our long-term objectives.

“Based on this work, we have exited several product lines and divested several businesses to reduce our heavy-duty truck exposure. We are pleased to share that we expect to complete this transaction as well as the other announced exits in line with the year-end 2020 timeline that we previously communicated.”

The Ohio-based Goodyear Air Springs, under a global and exclusive license from The Goodyear Tire and Rubber Company, providers air springs for trucks, buses, trailers, and specialty vehicles.

Established in 1957 by The Goodyear Rubber and Tire Company, Goodyear Air Springs is claimed to be a preferred partner to original equipment manufacturers (OEM) and trucking fleets in North America and in other parts of the world.

After completion of the deal, an affiliate of Turnspire Capital Partner will purchase all the assets of Goodyear Air Springs. This will include complete brand licensing rights, technical and a research and development center in Fairlawn, all manufacturing plants, all intellectual property, all real estate in the US and Mexico, and all employees.

Abel S. Osorio of Turnspire Capital Partners said: “We look forward to continuing the Goodyear Air Springs legacy as an independent company by leveraging an extensive product portfolio and bringing innovative technology solutions to leading OEM partners and aftermarket customers.

“Turnspire will build on the foundation of its legendary brand name, unparalleled reputation for quality, best in class reliability, and superior service.  Our agreement to acquire Goodyear Air Springs is the culmination of a highly integrated diligence process in which we utilized Turnspire’s extensive experience executing corporate carve-outs, and knowledge of the transportation and manufacturing industries, to deliver speed and certainty to EnPro.”

David Brinkman, Goodyear Air Springs’ general manager for EnPro Industries will continue to head the business in the role of CEO under the new ownership of Turnspire Capital Partners.

The deal is expected to be wrapped up in Q3 2020, subject to receipt of antitrust approvals and the usual closing conditions.