Tecumseh sheds Peerless division
TecumsehPower Company, a Grafton-based provider of powertrain solutions to the global outdoor power equipment industry, has sold its Peerless transmissions business to Husqvarna Outdoor Products.
The Peerless transmissions business, located primarily in Salem, Ind., with limited operations in Grafton, designs, manufactures and sells transmissions to outdoor power equipment to original equipment manufacturers and aftermarket service parts to OEMs and central warehouse distributors.
The transaction announced today represents the latest in a series of initiatives TecumsehPower’s management team is taking in response to significant declines in customer volume.
"In response to a very difficult situation, we are executing an orderly plan that protects our customers, creates value for our investors and preserves as many jobs as possible," said TecumsehPower Company president and chief executive officer Rudolf Strobl. "The successful divestiture of the Peerless transmissions business was a critical step in that process and is good news for everyone involved."
In October 2008 TecumsehPower informed its customers that the company would shut down manufacturing operations related to its engine business, a process that was largely completed by the end of 2008.
"We have sought and found solutions that preserve the commitment we made to our customers," Strobl said. "We have kept them informed every step of the way and will continue to evaluate every alternative with their long-term interest in mind."
Financial terms of the transaction were not disclosed.