First announced in September, the total value of the transaction will be approximately $1.2 billion, including Metaldyne’s debt. Metaldyne is acknowledged as a world leader in powder forging (PF) and has made its PF connecting rods a runaway success.

The deal was negotiated with the full support of Asahi Tec’s major investor RHJ International (RHJI). RHJI is a diversified holding company focused on creating long-term value for its shareholders and building on its existing businesses in Japan and elsewhere.

“Our customers are expanding their operations globally, increasingly outsourcing
higher, value added manufacturing processes and developing strategies that address these changes,” said Tim Leuliette, Metaldyne chairman, president and CEO.

“One of the most dramatic changes is where vehicles will be developed in the future. According to the automotive forecaster CSM Worldwide, by 2012 half of all vehicle development worldwide is expected to be done in the Asia-Pacific region.

Suppliers that will be successful and competitive in the future must be ready to respond rapidly to customers as they execute these changes.”

Acquiring Metaldyne will expand Asahi Tec’s geographic footprint and product portfolio and create a powerful global automotive supplier of highly engineered, precision modules and components for powertrain and chassis that can better serve its global customers on a local basis.

Asahi Tec has a significant presence in Japan, with additional operations in Thailand and China. Metaldyne has significant operations in North America, Europe, Korea and China and is growing in India and Brazil. After the transaction, both companies will be well positioned to benefit from growth in emerging markets in Asia as well as the success of transplants in North America and Europe.

“This acquisition will increase Asahi Tec’s customer base, geographic footprint and product portfolio,” said Shoichiro Irimajiri, chairman of Asahi Tec. “We will be able to bring new products and services to market more rapidly and more efficiently thanks to the increased scale of Metaldyne’s operations and a strong and widely recognised management team.”

The transaction offers both companies synergies. It is expected to expand the global footprint and customer base and create a strong, experienced combined Asahi Tec and Metaldyne management team.

It will enhance engineering capabilities and technology leadership in powertrain and chassis as well as expanding research and development capabilities. The manufacturing base is to broaden and will include aluminium castings, ductile iron castings, powdered metals and precision machining.

“Metaldyne and Asahi Tec have come together to create a stronger, more globally competitive company,” said Tim Leuliette. “All our customers, employees
and investors are better served by a stronger, better capitalised and more globally capable company.”