German ignition and cold-start specialist Beru AG has bought the tire pressure monitoring system business of AMI Doduco GmbH.
Beru expects sales of DM35 million (euro 17.7 million) in 2001 from the new business sector, rising to DM50 million in 2002
AMI Doduco, based in Pforzheim, Germany, has developed a sensor system that continuously measures the pressure in all the tires.
The company said that a pressure loss of just 0.3 bar can reduce the life expectancy of a tire by 25 percent. Low tire pressure also adds to fuel bills because of greater rolling resistance.
Gradual loss of pressure is also one of the biggest causes of tire blow-outs, said AMI Doduco.
Beru said that the acquisition strengthened the group's technical competence in the growth areas of electronics, radio signals and sensor applications.
Beru, which went to the Frankfurt stock market in October 1997 to raise capital for expansion, has about 4 percent of the world market for diesel engine glow plugs.
The group plans to grow total sales from DM426 million in the 1998-1999 financial year to DM700 million by 2001-2002.