Tower Signs Agreement To Sell Its European Operations 

Tower Signs Agreement To Sell Its European Operations 

The purchase price represents an enterprise value of €255 million (approximately $289 million US), which represents an EV/Adjusted EBITDA multiple of 5.4x 2018 full-year expected earnings.

Tower International, global manufacturer of engineered automotive structural metal components and assemblies, has entered into a stock purchase agreement (SPA) relating to the sale of all of its European Operations to Financière SNOP Dunois S.A. (FSD), a privately owned French automotive supplier. Tower says the SPA is substantially in the same form contemplated at the time that the Memorandum of Understanding was executed between Tower and FSD on Nov. 20.

 

The purchase price represents an enterprise value of €255 million (approximately $289 million US), which represents an EV/Adjusted EBITDA multiple of 5.4x 2018 full-year expected earnings.

“We are pleased to have executed the stock purchase agreement with FSD for the divestiture of Tower’s European operations. When completed, the divestiture will reduce Tower’s net leverage to less than 1 times Adjusted EBITDA, giving Tower the flexibility to continue to profitably grow our business while maintaining a conservative balance sheet and providing the opportunity for the return of capital to shareholders,” said CEO Jim Gouin. “Since 2014, Tower’s North American business has grown by more than 40 percent in a relatively flat production environment as we have benefitted from the industry’s shift from passenger cars to trucks and SUVs as well as OEM outsourcing. Tower is well-positioned to continue to benefit from these trends and current projections for full-year 2020 represent continued above market revenue growth and improved Adjusted EBITDA margins.”

Tower also has received Term Loan B lender consents and, subject to execution of definitive agreements intends to repay $50 million of outstanding Term Loan B indebtedness upon the closing of the transaction with FSD. This repayment, coupled with Tower’s voluntary reduction to the Term Loan in July of this year, would represent repayments totaling $100 million and reduce Tower’s Term Loan B to less than $260 million.

The closing of the sale transaction is expected to take place during the first quarter of 2019 and is subject to approval of the applicable antitrust authorities and certain other conditions.

You May Also Like

Standard Motor Products Introduces 268 New Numbers

The release provides new coverage in 75 product categories and 80 part numbers for 2023 and 2024 model-year vehicles, SMP said.

Standard Motor Products, Inc. (SMP) announced the introduction of 268 new part numbers in its April new number announcement. The release provides new coverage in 75 distinct product categories and 80 part numbers for 2023 and 2024 model-year vehicles, the company said.

Advanced Driver Assistance Systems

Thirteen Park Assist Sensors have been added, offering new coverage for import vehicles including the 2023-20 Toyota Camry and 2022-20 Nissan Rogue. Park Assist Cameras have been added for over 2 million Nissan vehicles, and ABS Sensors are new for 2024-20 Chevrolet and GMC heavy-duty trucks and the 2024-20 Cadillac CT4. Electronic Parking Brake Actuators are also new for Mazda and Mercedes-Benz vehicles.

TRP Celebrates 30 Years of Aftermarket Parts

Thirty years and 300-plus stores later, TRP looks back at what led to the milestone.

TRP-30th-Anniversary-Logo-1400
New Sanctions on Russian Nickel, Copper and Aluminum

Reisman discusses how the sanctions will impact prices paid by those in the automotive industry.

Marelli, Infineon Collaborate on Electronic Zone Control Unit 

Marelli will showcase its latest zone control unit (Zone), built in collaboration with Infineon, at the upcoming Auto China show in Beijing.

Marelli and Infineon Collaborate to Showcase Zone Control Unit 
Automechanika Ho Chi Minh City Event Lineup Announced

More than 500 exhibitors will showcase innovative mobility solutions, advanced technologies and a wide range of automotive products and services, June 20-22.

Other Posts

MAHLE Releases 2023 Sustainability Report

MAHLE noted it made significant progress in reducing its CO2 emissions, and increasing the use of renewable electricity.

MAHLE Releases 2023 Sustainability Report
Transtar Industries Continues Rapid Product Line Expansion 

The company is now offering OE recycled engines, in addition to its expansive line of OE recycled transmissions and transfer cases.

ZF Cleans Up Metro Park for Earth Day

ZF said the effort was in line with its dedication to sustainability, zero-waste and circularity.

ZF Cleans up Metro Park
PRT Launches 30 New Complete Strut Assemblies

The new items represent more than 10 million vehicles in new coverage, PRT said.