INDUSTRY news
Wescast Industries to Be Acquired by China-Based Sichuan Bohong Wescast Industries Inc., Brantford,
Ontario, Canada, has entered into an agreement to be purchased by Sichuan Bohong Industry Co. Ltd., Sichuan, China. T e company recently announced it has signed a memorandum of understanding to sell 100% of the issued and outstanding capital of Wescast at approximately $13.60 per share. According to a press release issued by the company, the sale came about as a result of a recent “strategic alternatives review.” “We believe this would be an
attractive outcome for Wescast’s shareholders,” said Jim Barton, chairman of the special committee of the Wescast board. “We will work diligently with Bohong towards entering into a defi nitive and binding arrangement agreement and completing the acquisition.” While the acquisition is still subject to approval by regulatory agencies and Wescast’s shareholders, Bohong has provided Wescast a deposit of $2 million. T e Chinese automotive supplier is in the process of obtaining the remaining funding required for the transaction. “We believe the two companies
are highly complementary in terms of products, services and operating values,” said Ed Frackowiak, Wescast’s chairman and chief executive offi cer. “In particular, we are excited by the potential to pursue future opportunities globally.” Wescast is a leading supplier of
cast exhaust manifolds for passenger cars and light trucks. T e company employs approximately 1,800 people in seven production facilities and fi ve sales and design centers in Canada, Hungary, the U.S., Germany, Japan and China, and it has sales and technical design representation in the U.K. and France. Wescast opened its Chinese
operation in 2008, and in late 2010, it expanded its turbocharger production capabilities at its Asian and European facilities. Bohong Group has more than 40 wholly-owned or holding
Sept/Oct 2011 | METAL CASTING DESIGN & PURCHASING | 9
subsidiaries and operates multiple metalcasting facilities. “Bohong intends to build on
Wescast’s long history and believes that this acquisition would assist
Bohong and China’s automobile industry to reach a new platform in servicing global customers,” said Dong Ping, chairman and chief executive offi cer of Bohong.
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