Donaldson Co. Inc. is in discussions to sell its $120 million yearly revenue exhaust and emissions business to Nelson Global Products Inc.
Bloomington-based Donaldson received an offer for the business from Stoughton, Wis.,-based Nelson Global, a maker of exhaust, engine emissions and noise-dampening products for medium and heavy-duty truck markets.
Donaldson has been considering options for its exhaust and emissions business. In investor presentations last April and fall they put the exhaust and emissions business in a category it dubbed Fix & Reposition.
"We believe that Nelson will provide E & E customers and employees a greater level of support. As we consider this transaction against our long-term opportunities, we expect the divestiture would create value for all stakeholders," said Donaldson's chairman, president and chief executive, Tod Carpenter, in a release.
Donaldson said it has a binding offer from Nelson to purchase Donaldson's exhaust and emissions business including sales and engineering teams as well as production and lab facilities.
Approximately 400 of Donaldson's more than 14,000 employees are part of the exhaust and emissions business, which has manufacturing sites in Auburn, Ala., and France and related facilities in Bloomington and Leuven, Belgium.
Donaldson in its last fiscal year ended July 31 had $2.8 billion in annual revenue and operates in two principal segments: engine products, where the exhaust and emissions business is, and industrial products.
The engine products business accounts for approximately 68% of total revenue.
A sale would be contingent on regulatory approvals and typical closing conditions including consultation with employee representative committees in Europe.
The deal could close in Donaldson's third quarter which ends April 30. No terms were disclosed.
Patrick Kennedy • 612-673-7926
