On the 2nd of February 2010, Klarius, Europe’s fastest growing automotive aftermarket manufacturing and distribution business completed the purchase of the Quinton Hazell automotive group (QH) from US-based Affinia.
Quinton Hazell is headquartered in Hinckley, Leicestershire, 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 £350million. Further planned acquisitions should soon see the Group’s turnover accelerate to over half a billion Euros.
“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 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.
The combined product range includes:
- Engine electrics, cooling system parts, pumps, filters and drive belts.
- The complete emission control system: catalytic converters, diesel particulate filters, exhausts, silencers and lambda sensors.
- Key drive-train components including: clutches, bearings, suspension and braking systems, as well as a huge range of accessories.
Klarius and QH Group combined offer a range of prestigious brands which now come under the Klarius Goup Company:
- Quinton Hazell
- Lip (Lipmesa)
- Wix
- Commercial Ignition
- Krooklok
- Moprod
- Friesen
- Klarius
and the distribution of Wix (Big X in Germany) filter products and FTE Automotive products in Europe
“Quinton Hazell gains new strengths following acquisition by Klarius”
“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% 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 been the pace-setter in the European automotive aftermarket. The company spectacularly turned around a £7m operating loss on the Emissions Control division in its first full year of trading, and has gone from strength-to-strength with a host of new initiatives that have revolutionised what had become rather a stolid industry sector.
The results of these initiatives are evidenced by Klarius’ ability to develop new parts in as little as three weeks: this from the initial customer demand, to the finished product being available from stock, and ready for shipping, next-day, to anywhere in the UK. The application of lean principles has made this possible; without employing additional staff, the production cycle has been reduced in terms of time, and the number of new products being produced has risen from 200 per year, to over 500 per year in the space of 18- months
In addition to its production and logistics successes, Klarius has also taken the lead in lobbying the UK Government with regard to type-approval on catalytic converters and exhaust systems. The company has continually highlighted the fact that the UK has the worst road pollution in Europe, and has championed ways to address the problem. Klarius’ lobbing has paid off in respect of type-approved catalytic converters, which are now obligatory on UK vehicles manufactured after 2001, but the scandal of non-type of approval of exhausts continues, putting the UK totally out of step with the rest of Europe. cles manufactured after 2001, but the scandal of non-type of approval of exhausts continues, putting the UK totally out of step with the rest of Europe.
“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.”
Klarius Group was advised on the acquisition by the Manchester office of law firm Hill Dickinson. The company has also agreed a new funding structure with Burdale Financial, the asset finance arm of Bank of Ireland. It will replace the firm's existing funders, Landsbanki Commercial Finance. Manchester based Ford Campbell acted for Klarius on the deal.
More information is available from the official launch website at www.Klarius-QH.com where visitors can watch interviews with each of the directors.
About the Klarius Group
Formed in 2007, the Klarius Group has 645 employees across Europe; Klarius operates three manufacturing production facilities and a research and development facility located in the UK. Added to that are European warehousing and four strong independent distribution platforms: in the UK, France, Germany and Spain. The Klarius technical centre has its own approved test track (the only parts manufacturer to have one) for undertaking type approval of parts. See www.klarius.eu for more information on Klarius
About Quinton Hazell
Quinton Hazell's success in the supply of original equipment reflects the company's consistently high standards across the whole product range. QH have over 800 employees across Europe. QH products are fitted to the latest generation of vehicles on the production line and the OE/OES sales team has the knowledge and experience to work with vehicle manufacturers, including their recognised aftermarket service operations, from concept to delivery. See www.qha.com for more information on Quinton Hazell.
………………Ends……………… Editorial contact:
Roland Renshaw, Director, DMA Europa Ltd.
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For reader enquiries contact: Véronique Auger, Marketing Coordinator, Europe,
Klarius Group Ltd. Glasson Dock, Lancaster, LA2 0DA. United Kingdom
Tel: + 44 1524 751 292 Fax: + 44 1524 751 604
Email: Veronique.Auger@Klarius.eu Web: www.klarius.eu