Asahi Tec completes $1.2B acquisition of Metaldyne

Metaldyne Corporation, a leading global supplier of powertrain and chassis systems and components, said its previously announced acquisition by Asahi Tec Corporation has been completed. Asahi Tec is a Shizuoka, Japan-based chassis and powertrain component supplier in the passenger car/light truck and medium/heavy truck segments.

The total value of the transaction is approximately USD $1.2 billion, including assumption of Metaldyne’s debt but excluding consent fees for the existing bonds and Asahi Tec transaction expenses. Asahi Tec’s major investors following the transaction include Asahi Tec’s major shareholder RHJ International SA (RHJI) and RHJI’s coinvestors, Mitsui & Company Ltd. and Chuo Mitsui Growth Capital Investment Limited Partnership II as well as Metaldyne’s largest stockholder, Heartland Industrial Partners, L.P.

As part of the transaction Asahi Tec is investing $205 million of equity in Metaldyne and Metaldyne’s existing credit and receivables facilities are being refinanced with new credit facilities of $670 million, comprised of a $150 million revolving credit facility, a $60 million synthetic letter of credit facility and a $460 million term loan facility of which $25 million will be available on a delayed draw basis after the merger. The $205 million of equity investment is $5 million higher than originally disclosed to cover higher expenses associated with the transaction.