Marathon Buying Diecasters, Automotive Caster from Bankruptcy

Marathon Asset Management L.L.C., a private-equity fund, reports it has acquired two nonferrous diecasting operations and an aluminum automotive component manufacturer, all of which it plans to incorporate with its Contech L.L.C. holding.

Each has been acquired from companies in bankruptcy, and in its announcement Marathon asserts they “expand Contech's metalcasting capabilities and customer base and are aligned with the company's continuing strategy to provide highly engineered, differentiated cast and metal formed products to the automotive and commercial truck manufacturers.”

Contech diecasts and machines light-metal components, and develops proprietary metal-forming process technologies. It also produces forged steel automotive components, and has started to use its steel tube fabricating assets to enter the heavy- and medium-duty truck markets. It was acquired by Marathon last April for approximately $147 million.

Morris Rowlett, Marathon Automotive Group chairman and CEO said the acquisitions "strengthen Contech's position as one of the premier suppliers of castings in the automotive industry, and advance the implementation of the strategic business plan that the Marathon Automotive Group has developed with Contech's senior management team. We plan to continue to work with Contech to take advantage of the company's leadership in design, engineering, manufacturing and customer service to capitalize on additional growth opportunities in the automotive and commercial truck industries."

Specifically, Contech has acquired Lunt Manufacturing, a magnesium diecaster with operations in Schaumburg and Hampshire, IL; Amcan Castings Ltd., an aluminum diecaster in Hamilton and Burlington, ON; and Toora Poland S.A., a producer of aluminum alloy wheels and other components (including safety devices, exhaust systems, and radiators), located in Nisko, Poland.

No values were announced for the purchased assets.

Contech president Mark Hunter pointed out his group will have “more flexibility with a larger footprint and an increased product offering. We are pleased to have been able to utilize our engineering and manufacturing resources to provide value and solutions to the customers of the businesses we have recently added, and we are excited to have taken a significant step in broadening the capabilities of Contech."