Auto parts firm Martinrea teams up on bid for aluminum component maker
May 9, 2011
By The Canadian Press
Auto parts maker Martinrea International Inc. said that it is teaming up with a private investment manager to bid for the assets of insolvent German aluminum component maker Honsel AG. Financial terms of the bid by Martinrea and Anchorage Capital Group LLC were not disclosed.
Honsel makes aluminum and magnesium parts such as engine blocks, cylinder heads and oil pans, transmission housings and controls, as well as body parts. It has operations in Germany, Spain, Mexico and Brazil, and employs about 4,000 people.
“After extensive diligence and negotiation, Martinrea, with its partner Anchorage Capital Group, has been selected by the administrator in the insolvency proceedings to finalize a purchase agreement,” Martinrea said in a statement. “Completion of documentation is anticipated shortly.”
Once the insolvency proceedings are complete, Martinrea will own 55 percent of Honsel and Anchorage will own 45 percent.
Toronto-based Martinrea reported higher first-quarter profits of $14 million as it benefited from a recovery in the North American auto industry.
Martinrea employs more than 7,000 people in 31 plants in Canada, the United States, Mexico and Slovakia.