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The Bosch Group has announced that it will sell its basic brake business to KPS Capital Partners, a private equity company headquartered in New York.
Both parties have signed an agreement a few days ago. The agreement still needs the approval of the relevant management department and is expected to be reached at the beginning of this year. The parties did not disclose the financial terms of the transaction.
The basic brake business sold by Bosch includes brake calipers, disc brakes, drum brakes, parking brakes and other products. The business had sales of 850 million euros (1,080 million US dollars) in 2010 and employed 5,200 people.
After the basic brake business is sold, Bosch will focus on the brake propeller and brake control system business. In addition, Bosch will retain and expand the aftermarket business of brake products, including brake discs and brake pads.