TecumsehPower sells assets from engine business
Just five days after announcing the divestiture of its Peerless transmissions business to Husqvarna Outdoor Products, TecumsehPower Company announced Feb. 10 it sold certain assets of its engine business to Certified Parts Corporation (CPC).
Financial terms of the transaction were not disclosed. However, the deal included the sale of existing and unfinished engine parts inventory, tools to make finished product, and certain intellectual property assets. CPC will also assume the warranty obligations of the engine business.
“We have again sought and found a solution that preserves the commitment we made to our customers,” said Rudolf Strobl, president and CEO, TecumsehPower Company. “We are proud to have found a way forward that ensures all warranty obligations are met and provides long-term parts and service support into the future.”
TecumsehPower will continue to own certain real estate and other assets, as well as provide some services to CPC under a transition services agreement for a limited period of time.
