Kaman Corp. has sold off its Mexican distribution subsidiary because it could not achieve long-term profit goals, the Bloomfield manufacturer-distributor announced Tuesday.
Delamac de Mexico S.A. de C.V. distributes bearings, power transmission products and lubrication systems.
The buyer is Mexico’s Rodamientos y Accesorios S.A. de C.V (RYASA). Financial terms were not disclosed, but Kaman said it expects to record a fourth-quarter pre-tax charge ranging from $4.5 million to $5.5 million related to the deal.
Kaman purchased a majority interest in Delamac in 2002, interested in accessing Mexico’s industrial markets and serving the Mexico operations of U.S.-based customers. But 12 years later, Kaman said it’s no longer working out.
“We did not have sufficient scale in Mexico to achieve our long-term targeted profitability goals and believe the operation will be better aligned with RYASA,” said Steven J. Smidler, Kaman’s executive vice president and distribution segment president.
Delamac represented less than 2.5 percent of Kaman’s distribution-segment revenue. The distribution segment had $1.07 billion in net sales last year across its more than 200 locations in the United States and Mexico. Delamac has 12 locations.
