Tower International Completes Sale of Two China JVs.
14 January 2016 - US-based automotive structural metal components and assemblies manufacturer Tower International, Inc. (NYSE: TOWR) has completed the sale of two joint ventures in China on terms consistent with prior projections, the company said.
Cash proceeds received during the fourth quarter were USD 48m.
Total enterprise value received from the sales, mainly also including the elimination of associated noncontrolling interests in Tower's net assets, totaled USD 88m.
Tower also sold one of its two operations in Brazil during 4Q15; this divestiture had not previously been discussed by the company.
Net cash proceeds and enterprise value received from the sale were USD 9m.
In 2015, the sold business had revenue of about USD 30m and a minor adjusted EBITDA loss.
Following these divestitures, Tower projects 2016 revenue in China and Brazil combined of about USD 100m.
Regarding the potential sale of Tower Europe, multiple strategic bidders have been invited to participate in the next phase, based on indicative, non-binding offers received before year-end.
The process remains on track for Tower to reach a go/no-go decision by about late 1Q16, the company said.
Sector: Motor Vehicles
Target: Tower International/two joint ventures in China
Vendor: Tower International, Inc
Deal size in USD: 48m
Buyer advisor: , ,
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|Publication:||M & A Navigator|
|Date:||Jan 14, 2016|
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