PROVIDENCE – Textron Inc. is considering “strategic alternatives” for its Kautex business unit, the company announced Monday.
Potential plans for the Bonn, Germany-headquartered business segment could include a sale, a tax-free spin-off or another type of transaction. The company said that Kautex, which develops and manufactures blow-molded plastic fuel systems and advanced fuel systems for cars and light trucks, has 30 manufacturing plants in 14 countries. The segment had reported revenue of $2.3 billion in 2018.
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Textron also said that the segment develops and manufactures camera/sensor cleaning solutions for automobiles, selective catalytic reduction systems designed to reduce emissions from diesel engines, and cast iron camshafts, crankshafts and other engine parts.
Textron revenue in 2018 totaled $14 billion. The company said that despite the announcement, there is no assurance that any transaction regarding the segment will occur.
“Kautex is a leading Tier One supplier to global OEMs. It has a long history of product innovation, world-class operations and strong financial performance,” said Scott C. Donnelly, Textron chairman and CEO. “We are exploring strategic alternatives to see how we can position Kautex to best serve its customers for ongoing success while simultaneously unlocking potential value for our shareholders.”
Textron said that it has retained Goldman Sachs & Co. as financial adviser related to the review of the segment.
