KP Capital Partners’ portfolio company Autokiniton Global Group (AGG), a North American supplier of metal-formed components and assemblies to the automotive industry, is to acquire Tower International, a manufacturer of engineered automotive structural metal components and assemblies, tor USD31 per share in cash.
The all-cash transaction represents a 70 per cent premium to Tower’s closing stock price on 11 July, 2019. Including Tower’s debt and pension related liabilities, the total value of the transaction is approximately USD900 million.
“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,” says Tower President and CEO Jim Gouin. “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.”
“The acquisition of Tower will significantly enhance AGG’s position as a leading North American manufacturer of metal formed components for the automotive industry,” says AGG CEO George Thanopoulos. “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 capitalised, 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.
