Chassix to acquire Benteler's automotive casting business
DETROIT -- Chassix signed an agreement Thursday to acquire Austrian conglomerate Benteler International's automotive casting business.
Terms of the deal were not disclosed, but an outside valuation expert calculated the deal to be worth about $30 million, assuming estimated revenue of $63 million with a five-times multiple on approximately $6 million earnings before interest, tax, depreciation and amortization.
The supplier, based near Detroit in Southfield, Michigan, plans to increase vertical integration in Europe with the buying of the Norway-based Benteler Automotive Farsund business that focuses on lightweight aluminum castings.
The business manufacturers safety components such as automotive sub frames, swing arms, steering knuckles and rear hubs, Chassix said in a statement. It employs 275 in Norway.
"The Farsund business is strategically aligned with the Chassix growth plan and provides a strong team to further develop our core competencies of casting and machining chassis, powertrain and sub-frame solutions for global customers," Chassix CEO Doug DelGrosso said in a release.
The sales agreement does not require regulatory approval, however several customer conditions and supplier contracts need to be approved before the deal is final, Chassix said. A date of completion is unknown.
The deal comes on the heels of Chassix's $50 million expansion plan in Europe. In March, it announced it would build a 140,000-square-foot plant in Ostrava, Czech Republic, to produce aluminum chassis and powertrain parts for passenger cars. This will be its first casting factory and third plant in Europe, which will allow the manufacturer to vertically integrate production in its key automotive regions. Chassix plans to hire 350 at the location.
Chassix filed for Chapter 11 bankruptcy in March 2015 with $556.7 million in total debt and $34.3 million in assets after missing bond payments, but reorganized and emerged in July of that year. In 2016, it generated revenue of $1.2 billion at 23 manufacturing plants with more than 4,000 employees.