Husqvarna Outdoor Products recently bought the Peerless transmissions business, according to TecumsehPower Co. officials. The Peerless division, located primarily in Salem, Ind., with limited operations in Grafton, Wis., designs and manufactures transmissions for lawn and garden power equipment OEM customers, and aftermarket parts to OEMs and central warehouse distributors. Husqvarna is not acquiring any assets or operations of Tecumseh’s engine business.

The transaction is the latest in a series of major moves for the formerly major U.S. small engine maker: Tecumseh was sold to Los Angeles-based Platinum Equity in 2007, and last year informed its customers that the company would shut down manufacturing operations related to its engine business, a process that was largely completed by the end of 2008.

Also, the past two years have seen a power struggle between Tecumseh’s founding family and new management for control of Tecumseh’s board following former Tecumseh President Todd Harrick’s removal in January 2007. Meanwhile, Tecumseh has sold off all but its compressor division in an attempt to return to profitability.

According to TecumsehPower Co. president and CEO Rudolf Strobl, the sale of Peerless comes “in response to a very difficult situation. We are executing an orderly plan that protects our customers, creates value for our investors and preserves as many jobs as possible,” he says. “The successful divestiture of the Peerless transmissions business was a critical step in that process and is good news for everyone involved.”

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