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CIE AUTOMOTIVE REINFORCES ITS MACHINING PRODUCTIVE CAPACITY IN MEXICO

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CIE AUTOMOTIVE REINFORCES ITS MACHINING PRODUCTIVE CAPACITY IN MEXICO

24/06/2019

The integrated companies are specialized in machining components for the automotive sector

 

Bilbao, 24.6.2019 - CIE Automotive today announced the acquisition of 100% of the share capital of the companies Maquinados de Precisión de México S. de R.L de C.V. and Cortes de Precisión de Mexico S. de R.L de C.V..
The value of the transaction (enterprise value) amounts 65.5 million US dollars (approximately 58 million Euros) and will be adjusted upon the closing date based on its indebtedness, as usual in this type of transactions. The price of the transaction will be paid by CIE Automotive in cash upon the closing date and will be financed through currently available cash.
The acquired facilities are located in Celaya, in the Mexican state of Guanajuato - the largest automobile corridor in Mexico - and are a key supplier for Tier I companies within the automotive sector, to which they supply a wide range of machining components.
In 2019 its EBITDA - gross operating margin – is expected to reach 18 million US dollars (approximately 16 million Euros).
According to Jesús María Herrera, CEO of CIE Automotive, "The rational of this integration is mainly the use of the productive assets, which complement the Group's machining activities in Mexico and which will allow us an important future physical and commercial expansion in this and other technologies. This transaction also reinforces CIE Automotive's commitment with the Mexican automotive market."
The closing of the transaction is subject to the fulfillment of the usual conditions in this type of transactions, including the authorization of the antitrust Mexican authorities.

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