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Metaldyne selling powertrain assets to equity firm

Posted Wednesday, Jun 17, 2009, 1:46 pm in Employee News

Metaldyne Corp. has agreed to sell parts of its powertrain business and many of its foreign subsidiaries to private equity firm RHJ International, the supplier said today, the Automotive News reported.

RHJ plans to form a new subsidiary that will buy some of the North American and all of the European parts of Metaldyne’s sintered products, vibration control and powertrain businesses, the trade paper said. It also plans to buy the supplier’s European forging business and some of its Asian operations, the story said.

The deal is worth about $100 million, including $25 million in cash, Metaldyne said today in a statement. The U.S. Bankruptcy Court must approve the sale, and RHJ has until July 2 to complete its scrutiny of Metaldyne’s financial condition, the story said.

According to the Automotive News, RHJ is majority owner of Asahi Tec Corp. of Japan, Metaldyne’s parent company. The Belgian private equity firm had said it planned to buy Metaldyne’s assets when the supplier went bankrupt May 27. Another private equity firm, The Carlyle Group, plans to buy assets from Metaldyne’s chassis business in the U.S., Mexico and Spain, the story said. (Automotive News)
 
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