Nature of Business
Hilite International is a global supplier of leading automotive solutions. Its innovative, and well-engineered, engine and transmission products are used to improve fuel efficiency and reduce emissions.
Headquartered in Germany, Hilite has around 1,300 employees at eight locations across Europe, North America and Asia and, following the sale of the emissions control division in mid 2012, generated recurring revenues of approximately €340m in 2012.
Among Hilite’s key customers are blue chip automotive manufacturers Volkswagen, Daimler, General Motors, Chrysler and BMW.
3i and funds managed by 3i agreed the acquisition of Hilite, from a consortium of investors in May 2011.
Our investment in Hilite, aligned with our international network, was a key factor in accelerating the development of a new production site in Changshu, China, to meet the growing demands of the Chinese market. The plant produces DCT components and VVT phasers and valves.
We have also worked closely with management on strategic decision making and operational improvement. As a result of this, in May 2012, we announced the sale to Cummins Inc. of Hilite’s heavy-duty emissions control business.
Under our ownership, Hilite had almost doubled the revenue of the emissions control business and this, combined with its continued attractive growth prospects, resulted in extensive strategic interest. We felt this was an opportune moment to divest this business and to focus on Hilite’s core business of powertrain components for passenger cars.
Hilite's future growth will be driven by global trends in fuel efficiency and emissions reduction; the company is well-positioned to benefit from these market developments due to its technological expertise and highly differentiated product offering.
Regulatory notice: This transaction involved a recommendation of 3i Investments plc advised by 3i Germany.