MD Investors Corp. has completed its $465-million purchase of the Metaldyne Corp. assets, including Metaldyne’s Sintered Products, Vibration Controls Products, European Forging Products and Powertrain Products groups, along with some assets related to chassis manufacturing. The new organization is known as Metaldyne L.L.C.
The sale, structured as a court-supervised auction following Metaldyne’s Chapter 11 bankruptcy filing in August, consisted of a $40-million cash payment and assumption of debt, liabilities, and credit totaling $425 million.
The Powertrain Products group, including its balance shaft module, driveline machining and assembly, and tubular products operations. Not included in the sale is the Metaldyne aluminum diecasting plant in Twinsburg, OH, though that operation is still under consideration. MD Investors has an option to included this plant in the sale once various site-specific details are addressed.
“These Metaldyne operations have solid product portfolios, advanced technologies, and an experienced workforce,” stated 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 The Carlyle Group and other Metaldyne term lenders.
The Metaldyne operations that were not included in the sale include plants in New Castle, IN, which is closed; and in Greensboro, NC, Middleville, MI, Niles, IL, and Thamesville, ON, each of which will close by the end of 2009.
“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,” stated Metaldyne L.L.C. chairman, president, and CEO Thomas A. Amato. “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.”
Powertrain-Focused Company Formed from Metaldyne Assets
Best-performing businesses transferred, five to close, one to be determined