Hayes Lemmerz purchased by Brazil’s Iochpe-Maxion
Following an all-cash transaction valued at approximately US$725 million, wheel manufacturer Hayes Lemmerz International, Inc. has been acquired by Iochpe Holdings, LLC, a subsidiary of Brazilian automotive and railway wheel and chassis manufacturer Iochpe-Maxion S.A. The deal will combine Hayes Lemmerz’s global wheels business with that of Iochpe-Maxion.
“Iochpe-Maxion has a strategic, long-term interest in the global automotive and commercial vehicle industries,” said Iochpe-Maxion COE Dan Ioschpe. “One of our principal strategies is to sustainably grow our core business internationally. This transaction will position us well to partner with customers to offer technologically-advanced products and outstanding services to meet their needs in every major geographic region for years to come.”
The 100 per cent acquisition of Hayes Lemmerz International brings 17 industrial units and an annual steel wheel capacity of some 63.4 million units to the combined company; it will have manufacturing locations in 13 countries and a presence in every major automotive region. “Automotive and commercial vehicle manufacturers are expanding globally and they are seeking global suppliers with the resources to invest and grow with them,” Ioschpe continued. “Vehicle manufacturers have many choices when it comes to the wheels they offer their customers, including both aluminium and steel wheels. The acquisition of Hayes Lemmerz will enable Iochpe-Maxion to better meet the needs of vehicle manufacturers by lowering costs across all products, enhancing service levels and offering a broader product line.”
“I would like to thank our employees for their outstanding performance and our shareholders for their support,” stated Hayes Lemmerz CEO Curtis Clawson. The company’s COO, Fred Bentley, added: “We look forward to a promising future with a long-term strategic shareholder like Iochpe-Maxion. This transaction is in the best interests of our customers, who will receive world-class products and services from a company with an even greater global footprint. The transaction is also in the best interests of our suppliers.”
Iochpe-Maxion and Hayes Lemmerz state that both companies are developing integration plans that “build on the cultural similarities and the best business and product development practices from each company.” According to Ioschpe, the Brazilian firm anticipates cost savings across the “broad spectrum” of its operations. “And, most importantly, this acquisition will allow us to continue to expand and grow our business to meet the needs of our customers,” he added.
Management for the combined company will be drawn from both companies’ current management; specific appointments will be announced prior to the agreement’s closure in the first half of 2012. The acquisition is subject to customary closing conditions, approval of Hayes Lemmerz’s and Iochpe-Maxion’s stockholders and regulatory approvals. The companies will continue to operate independently until the transaction is completed.
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