Klarius Buys Quinton Hazell

On the 2 February 2010, automotive aftermarket manufacturing and distribution business Klarius completed the purchase of the Quinton Hazell automotive group (QH) from US-based Affinia. Quinton Hazell is headquartered in Leicester, England, with strong manufacturing and distribution assets in France, Germany, Italy and Spain. The purchase brings a wide range of well known automotive aftermarket and OEM brands together, combining extensive manufacturing resources from both companies with global sales and distribution networks, boosting the group’s annual turnover to over £350 million. According to Klarius, further acquisitions, which should the group’s turnover pass half a billion euros, are planned.

“This acquisition is ideal for both companies as Quinton Hazell products are largely complementary to the existing Klarius range – with very little crossover,” said Klarius chairman, Tony Wilson. “We have the opportunity to grow the business in two ways: by developing new channels for our wider product range globally; and by exploiting our existing channels to the full, by providing customers with a wider range of quality products from a single source.”

As a privately owned concern, Klarius believes it is better placed to be flexible in terms of product and business development; focussing on strategic investment in increasing efficiency and optimising production rather than being driven by short-term shareholder returns. The new business has the potential for significant growth and a management team with a strong track record on delivering both profitability and sales growth.

By adding the extensive Quinton Hazell (QH Group) product range to its portfolio, Klarius now offers over 100,000 parts, covering the majority of the European Car Parc, supplying over 40,000 parts every day, to over 5000 delivery points in more than 136 countries.

“We plan to optimise Quinton Hazell’s production and logistics facilities with the same Lean Manufacturing techniques that have proved so successful at Klarius,” said Andrew Jones, Klarius Group MD. “These techniques have been pivotal in establishing Klarius as the most competitive and fastest growing supplier in the automotive aftermarket. By fully integrating them fully, we have achieved a 98.7 per cent delivery rate across our EU factories and are now introducing an unprecedented 100 new product references every month, compared to 15-20 when we took over the business. We are confident that by introducing the same procedures to Quinton Hazell, we can make a good company into a great one.”

Since its acquisition of the Emissions Control activities of ArvinMeritor Light Vehicle Aftermarket Europe, in 2007, Klarius has grown quickly in the European automotive aftermarket, turning around a £7 million operating loss on the Emissions Control division in its first full year of trading.

In addition to its production and logistics successes, Klarius has lobbied the UK Government with regard to type-approval on catalytic converters and exhaust systems. The company’s lobbying has paid off in respect of type-approved catalytic converters, which are now obligatory on UK vehicles manufactured after 2001.

“Our effective lobbying finally made Government see sense about the need for type- approval of catalytic converters in the UK, and we are determined to redouble our efforts to make sure that this measure is followed by type-approval for all exhaust systems sold here,” said Paul Hannah, Business Development Director Klarius Group. “Non type-approval on exhausts is a scandal that is making the UK the dirty man of Europe. We cannot understand the reticence on behalf of Government, especially as the case for type- approved systems is so clear. Not only are they more likely last longer, they can also help reduce emissions, increase fuel efficiency and reduce noise pollution.”

The combined product range includes: Engine electrics, cooling system parts, pumps, filters and drive belts; emission control systems – catalytic converters, diesel particulate filters, exhausts, silencers and lambda sensors; drive-train components including: clutches, bearings, suspension and braking systems; as well as a wide range of accessories.

As part of the deal Klarius will now offer the following QH Group brands which now come under the Klarius Goup Company: Quinton Hazell, Lip (Lipmesa), Commercial Ignition, Krooklok, Moprod Friesen and the distribution of Wix (Big X in Germany) filter products and FTE Automotive products in Europe.