Stalwart automotive manufacturer acquired by China Sichuan Bohong Industry Co. Ltd.
September 6, 2011
by The CANADAN PRESS
BRANTFORD—Wescast Industries Inc. has announced it is set to be acquired by China’s Sichuan Bohong Industry Co. Ltd. for $179.6 million.
The Brantford-based automotive parts manufacturer has entered into a memorandum of understanding (MOU) with Sichuan Bohong Industry Co. Ltd. for a proposed transaction to which Bohong would acquire all of the issued and outstanding Wescast shares at an expected price of $13.60 per share in cash.
The acquisition is subject to a number of closing conditions, including approval of Wescast’s shareholders, the Ontario Superior Court of Justice and regulatory authorities of competent jurisdiction.
The consulting firm says 836 deals worth a total of US$57 billion were made between April and June, the majority in the materials, energy and financial sectors, which accounted for 61 per cent of all deals.
Bohong Group is a group of companies engaged in automobile operations, manufacturing, real estate and new energy. The group includes over 40 companies and subsidiaries.
Wescast Industries Inc. is a manufacturer of cast exhaust manifolds for passenger cars and light trucks. It also designs, casts, machines and assembles exhaust system components, primarily exhaust manifolds, turbo charger housing and integrated turbomanifolds for automotive original equipment for customers in North America, Europe, Asia, Africa, South America and Australia.
It employs 2,000 people in seven production facilities in Canada, Hungary, the U.S., Germany, Japan and China.