Gabilan Manufacturing Inc., a California-based privately held supplier of motorcycle exhaust systems to Harley-Davidson Inc., has been purchased by Tenneco Automotive Inc., Lake Forest, Ill., for $10 million in cash.
Tenneco is a $4.2 billion manufacturing company with 18,800 employees and supplies shock absorbers, struts, mufflers and exhaust systems under the Monroe, Walker and other brands.
Gabilan had 2004 revenues of $38 million. Based in Salinas, Calif., the company has been a supplier to Harley-Davidson since 1978, and currently serves as the exclusive muffler manufacturer for all of Harley's product lines. The company has 240 employees and operates plants in Salinas, Milwaukee, Lincoln, Neb., and Emigsville, Pa.
Tenneco says it has reached a long-term agreement with Harley-Davidson to continue the supply relationship.
As part of the acquisition agreement, Tenneco is acquiring nearly all the assets of Gabilan Manufacturing. However, the company is not acquiring the Gabilan name, Gabilan real estate in Salinas, its discontinued farm equipment or other businesses or certain liabilities associated with the exhaust business. Tenneco Automotive will lease the facility in Salinas and will assume the current leasing agreements at the other Gabilan facilities.
"We are very pleased with this announcement," said Matt Levatich, vice president materials management, for Harley-Davidson. "The relationship we've had with Gabilan will be further enhanced by Tenneco Automotive with the addition of its broad engineering and manufacturing resources and advanced technology capabilities."
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