Martinrea International Inc., a diversified and global automotive
supplier engaged in the design, development and manufacturing of
highly engineered, value-added Lightweight Structures and
Propulsion Systems, today announced it has completed the
acquisition of the Structural Components for Passenger Cars
operations of Metalsa S.A. de C.V. The purchase price for the
transaction, subject to certain adjustments post-closing, was USD
$19.5 million in cash, inclusive of working capital and on a debt
free basis. The transaction has received regulatory approval from
all applicable merger authorities.
The operations acquired by Martinrea specialize in a wide
variety of metal forming technologies, including chassis components
such as cradles, control arms, and trailing arms; body components
such as side rails, A and B pillars, door beams, wheel housings and
bumpers; and several other components such as fuel tanks. The
operations have some great processes and leading edge technologies
in joining multi-materials further promoting Martinrea’s
lightweighting strategy, including hot stamping and paint, as well
as composite capabilities. The largest customers of the business
are Daimler, BMW, Volkswagen and Audi.
The acquisition adds six plants to the Martinrea footprint,
including facilities in Germany, the United States, Mexico, South
Africa and two in China, and approximately 2,000 creative and
motivated team members to the Martinrea family. The acquired assets
are expected to generate sales in 2020 of approximately CDN $400
million and will be integrated into operations immediately as
Martinrea seeks to achieve synergies and efficiencies. The acquired
assets include:
- a large facility in Bergneustadt, Germany, with a technical
centre which is the base for European production and engineering
for the group, producing body, safety and suspension structures;
this facility is approximately 70 kilometres from Martinrea’s
aluminum operations in Meschede, Germany, creating some opportunity
for synergies;
- a plant in San Luis Potosi, Mexico, producing body, chassis and
suspension structures, as well as door beams and steel fuel tanks.
This facility is approximately 5 kilometers from another Martinrea
steel metal forming operation, creating additional opportunities
for synergies;
- a relatively new start-up facility in Tuscaloosa, Alabama,
which produces safety structures, front ends and some service parts
and contract services;
- two facilities in China, one near Beijing and one in Shenyang,
that presently produce body, safety and suspension structures for
Daimler and BMW, respectively; and,
- a facility in South Africa that produces body structures for
Daimler.
Martinrea’s present steel metal forming business is located in
North America, and this acquisition gives the Company a broader
footprint in Europe, China and South Africa, as well as a presence
in the Lightweight Structures area with European-based customers
such as Daimler and BMW.
Pat D’Eramo, President and CEO of Martinrea stated: “We are very
pleased to announce the closing of the acquisition. We have been
working with many of our new people to ensure a smooth transition.
We welcome all our new team members and we believe we will achieve
much, as we strengthen the operations and grow our business.”
“I am also pleased to announce that, through our advanced
lightweighting and manufacturing technologies expertise, we have
secured a significant amount of new body-in-white business from
Daimler in connection with its EVA II electric vehicle platform.
The new business is expected to generate approximately $100 million
in annualized sales at mature volumes. We are very excited to
collaborate with Daimler to implement our advanced joining
technologies on the vehicle, utilizing a number of materials. This
work will help to fill current plant capacity when this program
launches in 2022.”
About Martinrea International Inc.Martinrea
International Inc. (TSX: MRE) is a leader in the development and
production of quality metal parts, assemblies and modules, fluid
management systems, and complex aluminum products focused primarily
on the automotive sector. Martinrea currently employs approximately
17,000 talented and motivated people in 57 locations in Canada, the
United States, Mexico, Brazil, Germany, Slovakia, Spain, China,
South Africa and Japan. Martinrea's vision is making lives better
by being the best supplier we can be in the products we make and
the services we provide. For more information on Martinrea, please
visit www.martinrea.com. Follow Martinrea on Twitter and
Facebook.
FORWARD-LOOKING INFORMATION
Special Note Regarding Forward-Looking
Statements
This press release contains forward-looking statements within
the meaning of applicable Canadian securities laws including
statements related to the Company’s expectations of the benefit of
the intended acquisition and any synergies, sales in 2020 and from
the Daimler business, positive customer relationships, program
wins, plant capacity and launch dates, the pursuit of its
strategies, and the continued investments in the business, as well
as other forward-looking statements. The words “continue”,
“expect”, “anticipate”, “estimate”, “may”, “will”, “should”,
“views”, “intend”, “believe”, “plan”, “outlook” and similar
expressions are intended to identify forward-looking statements.
Forward-looking statements are based on estimates and assumptions
made by the Company in light of its experience and its perception
of historical trends, current conditions and expected future
developments, as well as other factors that the Company believes
are appropriate in the circumstances, such as expected sales and
industry production estimates, current foreign exchange rates (FX),
timing of product launches and operational improvements during the
period and current Board approved budgets. Many factors could cause
the Company’s actual results, performance or achievements to differ
materially from those expressed or implied by the forward-looking
statements, including, without limitation, including the industry
trends and risk factors outlined in the Company’s Annual
Information Form and other public filings which can be found at
www.sedar.com.
These factors should be considered carefully, and readers should
not place undue reliance on the Company’s forward-looking
statements. The Company has no intention and undertakes no
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as required by law.
The common shares of Martinrea trade on The Toronto
Stock Exchange under the symbol “MRE.”
For further information, please contact:
INVESTOR RELATIONS:Fred Di Tosto, Chief
Financial OfficerMartinrea International
Inc.fditosto@martinrea.comTel: 416.749.0314
MEDIA CONTACT:Deanna Lorincz, Global Director,
Communications and MarketingMartinrea International
Inc.deanna.lorincz@martinrea.comTel: 248.392.9727Mobile:
586.634.1766
Martinrea (TSX:MRE)
Historical Stock Chart
From Mar 2024 to Apr 2024
Martinrea (TSX:MRE)
Historical Stock Chart
From Apr 2023 to Apr 2024