Tower International, a global manufacturer of engineered automotive structural metal components and assemblies, has announced the outcomes of divestitures the company completed during the fourth quarter of 2015.
The company completed the sale of two joint ventures in China on terms consistent with prior projections. Cash proceeds received during the fourth quarter were $48 million. Total enterprise value received from the sales, mainly also including the elimination of associated non-controlling interests in Tower’s net assets, totaled $88 million. No revenue or income from these joint ventures has been included in Tower’s reported results from continuing operations in 2015, as they were accounted for as discontinued operations.
Tower also sold one of its two operations in Brazil during the fourth quarter. Net cash proceeds and enterprise value received from the sale totaled $9 million. In 2015, the sold business had revenue of about $30 million and a minor adjusted EBITDA loss. Following these divestitures, Tower projects combined 2016 revenue in China and Brazil to be approximately $100 million.
Tower International also provided an update on the potential sale of Tower Europe. The company noted that multiple strategic bidders have been invited to participate in the next phase, based on indicative, non-binding offers received before year-end. The company said it expects to make a “go/no-go” decision by late first quarter 2016.