Bosch announced that it is to sell its foundation brakes business to a private equity company, KPS Capital Partners. The deal involves the original equipment business comprising a range of products, including parking brakes, brake calipers and disk brakes. The brakes business generated some EUR850 million in 2010, employing a total of 5,200 staff.

KPS Capital Partners is a leading private equity firm with experience in the industrial sector, including investments in a number of automotive related companies as well as a complete understanding of the OE customer base. Bosch had already announced the restructuring of its brake business in 2009 and it previously sold its North American brakes business to Akebono Brake Industry of Japan.

The remainder of Bosch's brakes business will focus on expanding the aftermarket business, including the production of brake disks and brake pads, as well as keeping its brake boosters and brake control systems business.

Bosch Group is a leading provider of technology and services in the areas of automotive and industrial technology, consumer goods and building technology. The company has 285,000 employees and generated EUR47 billion in 2010.

The global aftermarket for brakes will be worth just over $4 billion by 2017, driven by an increase in vehicles in both Western economies but more importantly, by emerging economies. Customers are increasingly searching for aftermarket brake products that are low cost, long life and high performance and are opting for premium brands,

For further market analysis of the global brakes market, see Automotive Brake Friction Products: A Global Strategic Business Report: http://www.companiesandmarkets.com/Market-Report/automotive-brake-friction-products-a-global-strategic-business-report-744329.asp