ArvinMeritor to Sell its Emissions Technologies Group
2 February 2007
|ArvinMeritor’s Plasma Fuel Reformer for emissions control and enhanced combustion.|
ArvinMeritor, Inc. has signed a definitive agreement to sell its Emissions Technologies business group to One Equity Partners (OEP), an equity investment firm based in New York for cash and other consideration totaling approximately $310 million. The transaction is expected to be completed in the third quarter of fiscal year 2007.
The company, a Tier 1 supplier to the auto industry, will use the proceeds to strengthen its balance sheet and invest in its chassis, drivetrain and apertures lines of business that it sees as core competencies.
By focusing on and investing in our light and commercial vehicle businesses where we have superior products, strong market positions and higher margins, we see greater potential for sustained profitable growth in our core capabilities. While we are confident in the growth potential of the emissions technologies portfolio, we believe that this business will be better served by an organization that is specifically positioned to invest capital and management resources in its development and growth.—Charles McClure, Chairman, CEO and President
The Emissions technologies business supplies a range of products for light-duty and commercial vehicles, including diesel particulate filters, diesel fuel vaporizers (earlier post), manifolds and maniverters, catalytic converters, mufflers and more.
ArvinMeritor has been working on a plasma fuel reformer in conjunction with MIT. The plasma fuel reformer, originally targeted to be on the market by the end of the decade, produces a hydrogen-rich gas (more than 20% hydrogen) from the diesel or gasoline fuel on board the vehicle that can then be used to enable emission control systems as well as to assist combustion (Hydrogen Enhanced Combustion Engine—HECE). (Earlier post.)
In the plasma fuel reformer, air is metered into a plasma generator located upstream of a combustor. High voltage is applied to the air stream, forming high-temperature plasma. This high-temperature plasma torch flows into the combustor, initiating vigorous combustion of a rich fuel-air mixture. Within the plasma fuel reformer, partial oxidation reactions occur in the high-temperature gas phase created by the plasma, eliminating the need for a reforming catalyst.
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