Solero Technologies, a supplier of automotive solenoids and control modules, is planning to acquire Kendrion’s automotive business in a move that will expand its offerings in electrification components and jump to a much larger scope worldwide. Formerly BorgWarner North American Controls, Solero struck the deal in April with Kendrion which plans to focus on opportunities in industrial markets.
Solero makes transmission and engine solenoids, along with stop-start accumulators and hydraulic control modules. Solenoids are basically an elongated electromagnet with tightly wound coils that create a uniform and strong magnetic field. Electro-hydraulic solenoid valves for motor cooling and electro-mechanical solenoids for mechanical shift actuation are key components supporting growth in the electric vehicle market. The Kendrion business adds intelligent actuators and other components to the portfolio, many of which also involve magnetic technologies.
The move sets up a dramatic growth path at Solero, acquired by venture capital firm Atar Capital in December 2021. In 2022, Donald James was hired as the new CEO and the company relocated to new headquarters in Rochester Hills, Michigan. From the facilities in Michigan for sales and engineering, and a manufacturing plant in Mississippi, Solero currently delivers 15 million parts across the globe each year.
“Kendrion’s automotive product portfolio is complementary and well aligned with Solero Technologies’ inorganic growth strategy,” said James, CEO. “The combined company will be well-positioned for capitalizing on global opportunities that support the industry transformation to electrification and sustainability.” The acquisition will add five European plants located in the Czech Republic, Germany and Romania as well as one plant in the US, and double the company’s annual revenue.
For Kendrion, based in Amsterdam, the transaction initiates a strategic repositioning away from the automotive industry to focus on industrial markets. Commented Joep van Beurden, Kendrion CEO: “[This] reflects an important strategic decision to put our focus exclusively on opportunities within our Industrial Brakes and Industrial Actuators and Controls business groups in Europe, China and the US.
