PLYMOUTH, Mich. — Metaldyne Corp. has completed the sale of substantially all of its assets to MD Investors Corp. MD Investors purchased certain assets related to Metaldyne’s Sintered Products, Vibration Controls Products, European Forging Products and Powertrain Products Groups, including its balance shaft module, driveline machining and assembly and tubular products operations. In addition, certain chassis-related assets were acquired.
Metaldyne was previously a wholly-owned subsidiary of Asahi Tec, a Shizuoka, Japan-based chassis and powertrain component supplier in the passenger car/light truck and medium/heavy truck segments.
The purchase was made under a court supervised 363 auction process. MD Investors paid approximately $40 million in cash subject to adjustments under the asset purchase agreement, plus the assumption of certain debt and liabilities, and credit bid more than $425 million of secured term debt. The new company will operate under the name Metaldyne LLC.
"These Metaldyne operations have solid product portfolios, advanced technologies and an experienced workforce," said Shary Moalemzadeh of MD Investors. "We have created a powertrain-focused company that will be a stable supplier to the global automotive industry, which we believe will benefit Metaldyne’s customers and other stakeholders."
MD Investors was formed by a group of Metaldyne’s existing term lenders led by The Carlyle Group, one of the largest global private equity firms with just over $85 billion of assets under management, and Solus Alternative Asset Management LP, a SEC-registered investment advisor.
The sale process began in connection with Metaldyne and its U.S. subsidiaries filing for protection under Chapter 11 of the U.S. Bankruptcy Code on May 27. Under U.S. bankruptcy law, a 363 sale allows a sale of assets on a going concern basis prior to confirmation of a plan of reorganization where a good business reason exists.
"The sale of our best performing businesses was the foundation of our restructuring goals for Metaldyne’s operations through the Chapter 11 process, and I am very pleased with the leadership MD Investors exhibited to bring this transaction to closure," said Thomas Amato, chairman, president and CEO of Metaldyne, LLC. "The strong support of our customers globally is a testament to the technology of our products and processes, and the dedication of our employees. On behalf of all of the employees of the new Metaldyne we look forward to a fresh start and new beginning."
The aluminum die casting and valve body plant in Twinsburg, Ohio, is still under consideration for the sale. Subject to a purchase agreement amendment, MD Investors has an option period to make a final decision on the inclusion of this plant while various site-specific details are addressed.
