A West Midlands engineering group has been bought out by a US firm.
HL Smith Transmissions, which is independent remanufacturer of heavy-duty commercial vehicle drivetrain and steering systems, has been acquired in an undisclosed deal by Michigan-based ATC Drivetrain.
The new owner, whose UK operation is based in Cannock, said the buyout would strengthen the group's market position and broaden the scope of its products and services.
ATC serves the global automotive industry from its facilities in the USA, UK and China, selling remanufactured powertrain and drivetrain products such as engines and transmissions cases to manufacturers, distributors and individual consumers.
Russell Smith is the current owner and son of Harold Smith who launched the business in 1955.
He is retiring following the completion of the buyout and said the acquisition marked a new and exciting phase for the company which operates from a 85,000 sq ft factory in Albrighton.
"ATC's acquisition will allow HL Smith to continue to grow and provides a secure future for our employees," he said.
"I'm confident the company is in good hands with the leadership of chief executive Greg Heald and his team."
Mr Heald added: "ATC's global depth in electronics and mechatronics combined with HL Smith's expertise in commercial vehicle mechanical steering and powertrain systems provides synergies that will strengthen our market position and broaden the scope of our products and services.
"The transaction marks ATC's second acquisition in the UK and fourth acquisition in the past two years as we continue to build out the company's geographic reach, capabilities and end markets."
Birmingham-based corporate finance advisory practice Orbis Partners acted for HL Smith with legal advice from Higgs.
Orbis director Tom McCarthy said: "It has been an absolute pleasure working with Russell and we are delighted to have found the right owner to build on the Smith family's legacy."
