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 1,200 employees at eight locations in Europe, North America and Asia and generated revenues of approximately €370m in 2011.

Among Hilite’s key customers are blue chip automotive manufacturers Volkswagen, Daimler, General Motors, Chrysler and BMW.

Investment Overview

3i and funds managed by 3i agreed the acquisition of Hilite, from a consortium of investors in May 2011.

We have a great deal of experience in the automotive industry and with growing businesses internationally. 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 of Hilite’s heavy-duty emmissions control business to Cummins Inc.

Under our ownership, Hilite had almost doubled the revenue of the emissions control business and this, combined with continued attractive growth prospects, resulted in extensive strategic interest. We felt this was an opportune moment to make the divestment and 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 and the company is well-positioned to benefit from these market developments due to its technological expertise and its highly differentiated product offering.

_{Regulatory notice: This transaction involved a recommendation of 3i Investments plc advised by 3i Germany}