Metaldyne Corporation Business report FY2006
Acquisition by Asahi Tech of Japan
In January 2007, the Company said the 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.
In March 2007, Asahi Tec Corp. announced initiatives to expedite the integration of its Metaldyne subsidiary, consolidate the corporate management structure and reduce operating costs. The company expects these actions, along with the recent announcement of plant closings and executive retirements, to result in a net savings of more than $10 million in fiscal 2007. Asahi Tech will continue to focus on balancing assets with the changing global market opportunities and the company's expanding Asian businesses. This consolidation of corporate functions comes just 10 weeks after the merger was completed in early January 2007. Asahi Tec also completed a successful equity issuance in early March 2007 whereby new investors from Southeast Asia and Europe contributed more than $70 million of new equity. This equity round was the second part of a planned three-phase restructuring of the Asahi Tec/Metaldyne capital structure which included the initial merger transaction, the equity issuance and a contemplated debt refinancing of the combined companies.
In November 2006, the Company announced it has been awarded a contract from an Asian automaker to supply integrated balance shaft/oil pump modules. The program, valued at approximately $40 million annually, will launch in 2008 to produce balance shaft/oil pump modules for diesel engines that power passenger cars and SUVs. The Metaldyne module is designed with proprietary gear, shaft and oil pump technologies to create a smoother driving experience. Metaldyne's unique gear technology meshes with the crankshaft gear to eliminate unwanted noise. The oil pump is integrated into the module to provide lubrication to the entire engine, offering additional noise, vibration and harshness (NVH) benefits. The housing architecture significantly reduces the size of the module, minimizing packaging space claim and improving power consumption. By incorporating the oil pump into the balance shaft module, Metaldyne helps the customer meet future emission requirements.
In December 2006, the Company announced it has been awarded a contract from an Asian automaker to supply damper isolation pulleys. The program, valued at approximately $12 million annually, will launch in 2008 to produce damper isolation pulleys for diesel engines that power passenger cars and SUVs. Metaldyne's unique damper isolation pulley reduces cost, weight, and complexity, while improving noise, vibration and harshness (NVH) characteristics for a quiet ride.
In February 2007, the Company announced it has been awarded a $70 million contract from a global automaker to supply chassis products for multiple 2007-2008 model-year car and truck platforms. The first program is currently in production in the United States; the second begins production in Mexico later in 2007; and, a third launches in China in 2008. Metaldyne will supply front and rear knuckle assemblies and front lower control arm assemblies that reduce cost, weight and complexity, and improve noise, vibration and harshness (NVH).
In January 2006, the Company announced that it has entered into an asset purchase agreement with Forming Technologies, Inc. related to the acquisition of Metaldyne's North American Forging business. The Company's North American Forging business includes the operations as currently being conducted at its Royal Oak, Fraser, Detroit, and Troy, Michigan; Canal Fulton and Minerva, Ohio; and Fort Wayne, Indiana facilities. As conditioned upon the terms of the agreement, a transaction may close sometime in the first quarter of 2006.