Parker Hannifin Selling Auto Air Conditioning Unit
CLEVELAND (AP) — Parker Hannifin is selling its automotive air conditioning business to Germany's ContiTech AG.
Financial terms were not disclosed.
Parker Hannifin Corp., which makes industrial hoses, airplane wheels and other products, said Monday that the automotive air conditioning business is part of its mobile climate systems division. The business makes parts for the light vehicle automotive industry such as hose and tube assemblies, accumulators, receiver dryers and oil coolant assemblies.
The mobile and hose parts of the division are not part of the deal.
"Parker believes that the long term prospects for this business and our employees will be best served as part of an organization with a more strategic focus in this market," Tom Healy, president of Parker Hannifin's climate and industrial controls group, said in a statement.
ContiTech CEO Heinz-Gerhard Wente said that the transaction will help strengthen its presence in Asia.
Earlier this month Parker Hannifin Corp. reported that its fiscal fourth-quarter net income climbed due to strong growth in North America and aerospace sales.
Shares of Parker Hannifin, which is based in Cleveland, fell 76 cents to $82.71 in midday trading.