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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. Te company recently announced it has signed a memorandum of under- standing to sell 100% of the issued and outstanding capital of Wescast at ap- proximately $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 en- tering into a definitive and binding arrangement agreement and com- pleting the acquisition.” While the acquisition is still subject


to approval by regulatory agencies and Wescast’s shareholders, Bohong has pro- vided Wescast a deposit of $2 million. Te 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 CEO. “In particular, we are excited by the potential to pursue future opportunities globally.”


Wescast has expanded its international operations in recent years and added to its product mix, which traditionally was focused on exhaust manifolds.


Wescast is a leading supplier of cast exhaust manifolds for passenger cars and light trucks. Te company employs approximately 1,800 people in seven production facilities and five 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 op-


eration 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 subsidiaries and operates multiple metalcasting facilities. “Bohong intends to build on Wes-


cast’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 CEO of Bohong.


Grenville Castings Purchased by Cosma International


Automotive parts manufacturer Cosma International, Brampton, Ontario, Canada, has acquired aluminum permanent mold caster Grenville Castings Ltd., Smiths Falls, Ontario, Canada. Grenville Castings is a supplier of


structural castings to the automotive, heavy truck and recreational markets. According to a press release issued by Cosma, the company was purchased for its focus on niche production and development of complex castings, including thin wall and hollow parts produced in the low pressure perma-


8 | MODERN CASTING October 2011


nent mold process. Te financial details of the acquisition were not disclosed. A supplier of parts manufactured


through various metal forming processes, Cosma is a wholly owned operating unit of Magna Interna- tional Inc., Aurora, Ontario, Canada. Te company believes the acquisition will help it become a leading global manufacturer of aluminum struc- tural castings in all major geographic markets and support its launch of an automotive chassis program scheduled to start production in 2014. “Tis acquisition further enables


Cosma to support our customers with lightweight solutions through the lat- est technologies and proven manufac- turing excellence,” said Horst Prelog, Cosma president. “Grenville’s exper- tise in the area of structural castings enhances our already diverse range of metal forming solutions.” Cosma has 47 manufacturing facili- ties and 25 product development and engineering centers worldwide. Magna employs approximately 104,000 in 269 manufacturing operations and 84 product development, engineering and sales centers in 26 countries.


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