Navistar engine subsidiary to acquire MWM

Navistar International Corp's South American engine subsidiary, International Engines South America, has agreed to acquire MWM Motores Diesel Ltda (MWM), a major Brazilian diesel engine producer. The purchase price was not disclosed.

MWM produces a line of medium and high-speed diesel engines ranging from 50 to 310 horsepower for use in pickups, vans, light and semi-heavy trucks, as well as agricultural, marine, and electric generator applications. Annual production exceeds 85,000 engines with 2004 revenues for the privately held company of about $370 million.

Although the agreement has been completed, CADE, the Brazilian anti-trust regulatory authority, will review the combination of the two companies. Only minimal synergies can be achieved before CADE approval.

Owned by the Thiele family, MWM began operations in Brazil in 1953. The company is headquartered and has manufacturing operations in Sao Paulo, Brazil.

The new company will be operated as MWM International Industria da Motores da America do Sul Ltda, with Waldey Sanchez, currently managing director of International's South American engine business, serving as president and chief executive officer.