A car part company that makes a $1 billion profit from auto parts is taking over a key automaker.
Business Insider article 3:22 PM ET Nov 14, 2018 12:58:37 A car parts company that made a $11 billion profit in 2016 from auto part sales is taking the reins of one of the world’s largest auto parts manufacturers.
The New York-based company called Axel Motors Group will take over the parts business of auto parts maker JDI Group, which has grown to $10 billion in sales.
Axel will retain a 10% stake in JDI.
The company says it will sell its remaining stakes in JTI and JDI to Axel for $1.6 billion.
Axel’s stock rose more than 10% to $32.10 in early trading.
The deal is the latest to put an emphasis on growing revenues in the auto parts business.
The U.S. has lost more than 3 million jobs in the past three years and is on track to lose another 2.4 million by 2021.
Axels shares are up nearly 10% this year to $41.85.
JDI’s shares are down nearly 5% this week to $11.80.JDI sells more than 70% of its products through its online store, and Axels is the only company in the U.K. that also sells directly to customers.JTI also sells its parts through its website, and the U., U.C.I.A. and JCI Automotive Group have their own online store.
Axes’ board chairman and CEO John Tillemann told the Wall Street Journal that the new company will be an “innovative and disruptive leader in the automotive parts market.”