SOURCE Tupy S.A. Read The Article
Tupy S.A., a Brazilian-based manufacturer of engineered cast iron structural components, today said it has agreed to acquire FCA’s global cast iron automotive components business, which is operated through FCA’s subsidiary Teksid S.p.A.
PSR Analysis: With the acquisition of the Italian cast iron foundry, the Brazilian company will have almost 10% of the global sales in the segment with a combined revenue in the range of 7 billion Reais (approximately $ 1.8 billion USD. PSR
Tupy says this deal will expand its presence in key segments of the global capital goods industry and will expand its potential for growth in machining and engineering services.
The proposed transaction includes Teksid’s production facilities in Brazil, Mexico, Poland and Portugal, in addition to Teksid’s interest in a joint venture in China, Teksid’s engineering office in Italy and the sales office in the United States.
Teksid’s aluminum business is not included in the transaction and will remain part of FCA.
The amount payable by Tupy to FCA at closing is €210 million, subject to certain purchase price adjustments. The proposed transaction is subject to customary closing conditions, including the receipt of antitrust approvals.
The transaction is also expected to strengthen Tupy’s strategic partnership with FCA, which will remain a significant customer of the combined Tupy and Teksid group following closing of the acquisition.
Tupy is a Brazilian company specialized in developing and manufacturing highly-engineered structural cast iron components used in capital goods that serve freight transport, construction industry, agriculture and many others industrial applications.
