Filter Manufacturers Avoid Second Request

German-based industrial filter manufacturer Mann + Hummel announced its planned acquisition of the global filtration operations (excluding South America operations) of Affinia Group in August 2015. The two companies both supply on- and off-road filter products, such as air, oil, and gas filters for passenger cars, as well as other filter products. Mann + Hummel is known for its Purolator and Mann Filter brands, while Affinia is known for Wix and Filtron brands of filters. While the two companies manufacture some of the most well-known brands of filters, evidence was brought to show the importance of private label brands and intense global competition for the supply of filters in the U.S. In addition, evidence showed the complementary focus of the two companies’ business.

A Compass Lexecon team of Janusz Ordover, Rick Flyer and Colleen Loughlin assisted Lisl Dunlop of Manatt, Phelps & Phillips, LLP and her client Mann + Hummel in developing economic arguments and evidence in support of the U.S. aspects of the transaction, which were presented to the Federal Trade Commission. The result was termination of HSR review at the end of the initial waiting period in October 2015. The Compass Lexecon team also worked with Joseph Krauss of Hogan Lovells US LLP and his client Affinia Group.