Help Desk -
9717405332, 9599714297, 9810335381
Email
Password

Autokiniton Global to Acquire Tower International

Auto News - Published on Wed, 17 Jul 2019

Image Source: google.com
Autokiniton Global Group a leading North American supplier of metal-formed components and complex assemblies to the automotive industry, and Tower International, Inc a leading manufacturer of engineered automotive structural metal components and assemblies, today announced they have entered into a definitive agreement for AGG to acquire Tower for USD 31 per share in cash. AGG is a portfolio company of KPS Capital Partners a leading global private equity firm with over USD 5.0 billion of assets under management. The all-cash transaction represents a 70% premium to Tower’s closing stock price on July 11, 2019. Including Tower’s debt and pension related liabilities, the total value of the transaction is approximately USD 900 million.

Tower President and CEO Jim Gouin said that “We are extremely pleased to reach agreement with AGG on a mutually beneficial transaction that creates substantial value for Tower stockholders, customers and colleagues. Tower stockholders benefit from an immediate share price premium. Tower customers will benefit from the expanded product offering and manufacturing footprint of Tower and AGG. Finally, Tower colleagues will benefit by becoming a part of a combined entity which will be a more competitive North American supplier with a complementary manufacturing footprint and lightweighting technologies that uniquely position it for continued profitable growth.”

AGG CEO George Thanopoulos said that “The acquisition of Tower will significantly enhance AGG’s position as a leading North American manufacturer of metal formed components for the automotive industry. The combination of these two companies creates synergistic value by lowering overall cost, significantly broadening our product offerings and diversifying our customer base. We are excited to bring Tower’s world-class products, well-positioned facilities and highly-skilled workforce into AGG. Following the transaction, AGG will remain conservatively capitalized, with capital resources to fund product-focused research and development, technology and significant organic growth. AGG remains committed to providing our current and future customers with world-class product quality and customer service.”

The transaction is anticipated to close in September or October of 2019.

Source :

Posted By : Mohan Sharma on Wed, 17 Jul 2019
Related News from Auto segment