Metaldyne Corp., a supplier of powertrain and chassis systems and components, said Friday it will be acquired by Asahi Tec Corp., a Japanese chassis and powertrain component supplier, for $1.2 billion.
The deal is expected to be completed in the fourth quarter.
In addition to expanding the global presence and customer base of the companies, the transaction is expected to broaden manufacturing capabilities, including aluminum castings, ductile iron castings, powdered metals and precision machining, reduce costs through joint procurement, improve facility utilization and expand the market opportunity for light vehicles (Metaldyne) and heavy trucks (Asahi Tec).
"Our customers are expanding their operations globally, increasingly outsourcing higher, value-added manufacturing processes and developing strategies that address these changes," said Tim Leuliette, Metaldyne chairman, president and CEO. "One of the most dramatic changes is where vehicles will be developed in the future. According to CSM Worldwide, by 2012, half of all vehicle development worldwide is expected to be done in the Asia Pacific region. Suppliers that will be successful and competitive in the future must be ready to rapidly respond to customers as they execute these changes."
In addition, Metaldyne will continue to operate independently and will keep its name. Leuliette will continue to oversee day-to-day operations as chairman and CEO of Metaldyne.
