Marathon Asset Management acquires Contech.

Marathon Automotive Group, a division of Marathon Asset Management LLC, New York, has entered into an agreement to acquire metalcaster Contech, Portage, Mich., from SPX Corp., Charlotte, N.C.

Contech, a supplier of diecast and forged components for the automotive and truck markets, will sell for approximately $146 million in cash. Marathon is planning to provide the funding for the acquisition. The transaction is expected to be completed in the second quarter of 2007.

"Marathon brings us the financial support that will enable us to expand our business," said Mark Hunter, president of Contech.

According to a Marathon press release, Contech is the most meaningful acquisition to date for the equity firm's Automotive Group, which was formed to make acquisitions of suppliers in the automotive and truck industries. Contech has annual revenues of approximately $300 million and was reported as a discontinued operation at the end of the third quarter of 2006. Marathon's executive team will partner with Contech's management to continue operations.

"Contech is a leader in the automotive supply industry, with a strong product portfolio, stellar management team and employee base and a superior platform on which to build for future growth," said Wray Thorn, managing director of Marathon's private equity group.

SPX Corp. executives said they expect to use the majority of the proceeds to repurchase company shares.

"Contech is a high quality supplier to the automotive industry with a strong management team, and we wish them every success in the future," said Chris Kearney, president and CEO of SPX. "This transaction, however, is a natural progression for SPX. Contech no longer fits into our long-term strategy."