GRUPO KUO, S.A.B. de C.V. (Formerly DESC, SA. De CV)

Company Profile

■URL

http://www.kuo.com.mx/

■Address

Paseo de los Tamarindos 400-B, piso 31, Bosques de las Lomas, Mexico D.F. 05120

Business Overview

-The Company is a global conglomerate that is organized into three sectors based on the markets which they serve: Consumer, Chemical, and Automotive. The Automotive sector is further divided into two Strategic Business Units (SBU): Transmissions and Aftermarket.

-The Company’s Automotive sector primarily manufactures transmission systems and components for passenger and commercial vehicles as well as gaskets and sealing elements. In addition, the Company’s Aftermarket SBU provides braking components, pistons, and piston pins.

Competitors

-Aisin
-Eaton
-Federal-Mogul
-Fraco
-Getrag
-Graziano
-Mahle
-Pevisa
-US Gear
-ZF

Shareholders

-The Company is listed on the Mexican Stock Exchange.

Products

Transmission systems and components
-Rear-wheel drive transmissions
-Manual transmissions
-Automated manual transmissions
-Dual clutch transmissions
-Five- and six-speed rear-wheel drive manual transmissions for light-duty trucks
-Five- and seven-speed transmissions for medium-duty trucks
-Ten-speed dual counter shaft manual transmission for heavy-duty trucks
-Wet single and dual clutches
-Hydraulic systems
-Solenoid valves
-Transmission control units
-Gears
-Shafts
-Shift controls
-Constant velocity joints
-U-joints
-Clutches
-Differential components

Gaskets and sealing elements
-Cylinder head gaskets
-Oil pan gaskets
-Valve cover gaskets
-Intake manifold gaskets
-Exhaust manifold gaskets
-Timing cover gaskets
-Oil seals
-Valve stem seals
-Distribution gaskets
-Water pump gaskets
-Oil pump gaskets
-Exhaust system gaskets
-Camshaft oil seals

Brake components
-Brake pads
-Wheel cylinders
-Brake linings
-Hub units
-Brake rotors
-Drum brakes

Synthetic rubber for tires

History

Aug. 1973 Established in Mexico City as Desc, Sociedad de Fomento Industrial, S.A. de C.V.
Aug. 1975 Listed on Mexico Stock Exchange
Dec. 1992 Acquired 40% of the shares of Grupo Irsa, S.A. de C.V. (GIRSA).
Feb. 1994 Present name adopted
Jun. 1994 The Company's indirect subsidiary Spicer, S.A. de C.V. acquired 89.02% of the shareholding of Transmisiones y Equipos Mecanicos, S.A. de C.V. (TREMEC). Through subsequent acquisitions, Spicer shareholdings in Tremec increased to 97.96%.
Sep. 1997 The Company's subsidiary Agrobios acquired 94.3% of Corfuerte S.A. de C.V. for 77million US dollars.
Jun. 1998 The Company's subsidiary Dine acquired an additional 10% of the capital of Canada Santa Fe, S.A. de C.V.
Sep. 1998 The Company's subsidiary Agrobios sold 18.69% of its participation in Corfuerte and AAC.
Dec. 1998 The Company's Agrobios subsidiary Corfuerte acquired 60% of the shares of Nair Industrial, S.A. de C.V. and Pesquera Nair, S.A. de C.V.
Dec. 1999 Merged Agrobios, S.A. de C.V. into its own operations and acquired direct interests in the company's subsidiaries: Agroken, S.A. de C.V. (99.9%); Aquanova, S.A. de C.V. (99.9%); Agrobios Corporativo, S.A. de C.V. (99.9%); Grupo Corfuerte, S.A. de C.V. (77.9%); and Authentic Acquisition Corporation, Inc. (81.3%).
Jul. 2001 Announced that Unik's subsidiary (autoparts sector), Transmisiones TSP, S.A. de C.V. (TTSP) reached an agreement to sell its heavy-duty and medium-duty truck clutch manufacturing business to the Eaton Corporation.
Oct. 2001 Reached an agreement to swap 60% of its valve business for 40% of TRW Inc.'s piston business (pistons, pins and tappets). This transaction ended the partnership between TRW and Unik, as TRW acquired 100% of the valve business.
Jun. 2002 Closed spark plugs (Bumex, S.A. de C.V.) and electrical parts (IEA, S.A.de C.V.) businesses.
Feb. 2005 Sold 51% of its stake in Velcon, S.A. de C.V., a company engaged in the manufacture of drive shafts, to GKN Internacional Ltd. for approximately 80 million U.S. dollars.
Jun. 2005 Sold all of its stake in Morestana, S.A. de C.V., a company engaged in the manufacture of valves, to Eaton Corporation for approximately 8 million US dollars.
Nov. 2005 Announced it has signed a letter of intent with Dana under which Dana will acquire full ownership of several core operations based in Mexico. Under terms of the letter, both companies will dissolve their existing joint venture partnership, Spicer S.A. de C.V., with the Dana assuming 100% ownership of operations that manufacture and assemble axles and driveshafts, as well as forging and foundry operations in which the Company currently holds an indirect 49% interest. The Company in turn, will assume full ownership of the transmission and aftermarket gasket operations in which it currently holds a 51% interest.
Dec. 2005 Kolbenschmidt Pierburg announced that KS Kolben will acquire the piston business of Pistones Moresa, located at Celaya, Mexico, from the Desc Automotive.
Dec. 2005 Announced the formation of a joint venture between its subsidiary, Desc Automotriz, and CIE Automotive, S.A. to produce auto parts in the stamping, mechanical, aluminum injection, and painting segments for the NAFTA and Central American markets.
2007 Desc changes its name to Grupo KUO.
2008 Reorganized itself in strategic business units.
2009 Divested its stamping, painting and assembly business in the Automotive sector.
2010 Established KUO Divgi Automotive Private Limited in Pune, India.
2011 Acquired FRITEC (Mexico), the manufacturer of replacement brake parts.
2012 Acquired the assets of Hoerbiger Drivetrain Mechatronics B.V.B.A., and entered into the business of dual-clutch systems.
Oct. 2015 Completed transaction in which the Company contributes its emulsion rubber and nitrile businesses to Dynasol, a 50:50 joint venture that the Company has with Repsol.

Supplemental Information 1