Metaldyne Sells Assets to RHJ Int.

Bankrupt auto industry supplier Metaldyne has agreed to sell powertrain and operating assets, as well as stock of its foreign subsidiaries to RHJ International, one of the two companies that expressed their intention of buying Metaldyne assets back in May, when the bankruptcy was announced.

"RHJI is uniquely positioned given their global automotive supplier holdings, commitment to the automotive industry, and operating company expertise," Thomas Amato, Metaldyne CEO said upon announcing the sale.

To complete the sale by July 2, a new subsidiary of RHJ will purchase some of Metaldyne's North American and European assets. RHJ also targets Metaldyne's European forging business and its Asian operations.

The deal is estimated at around $100 million, with 20 percent of that amount to be handed in cash, reported. RHJ will also provide funding for Metaldyne's future working capital needs.

"The Metaldyne operations being purchased have strong product portfolios, advanced technologies and perform well operationally. The new powertrain-focused company RHJI is creating will be a solid supplier to the restructured global automotive industry," Amato added.

In late May, when it announced its bankruptcy filing, Metaldyne managed to secure a $18.5 million debtor-in-possession financing from Deutsche Bank's New York branch to help it meet working capital requirements.

As for the remaining assets, Metaldyne places its trust into the Carlyle Group, the other private equity firm to have expressed interest in the bankrupt supplier. Carlyle will most likely take over Metaldyne's chassis business in the U.S., Mexico and Spain.

Today, the financing increased to $19.85 million, thanks to additional funding from two original equipment customers.
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About the author: Daniel Patrascu
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Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
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