The CEO, Jesús María Herrera, places the objective of the purchase in complementing the machining activities in Mexico to address an important physical and commercial expansion
The Basque automotive group CIE Automotive has closed the acquisition of two companies dedicated to the machining of parts in Celaya, State of Guanajuato (Mexico), for an amount of about 58 million euros.
The acquired companies are, according to the Basque company in a statement, Precision Machining of Mexico and Precision Courts of Mexico, whose Ebitda (gross operating margin) is expected to reach 18 million US dollars (approximately 16 million euros) at the end of 2019.
The price of the operation will be adjusted on the closing date of the transaction based on its indebtedness, which is common in this type of operation, the Basque company said.
The purchase price will be paid by CIE Automotive in cash on the closing date and will be financed through the cash surplus currently available to the Basque company.
Jesús María Herrera, CEO of CIE Automotive, explained that the objective of the purchase of these companies is “the use of the set of productive assets”, which complement the mechanized activities of the group in Mexico and will allow an important physical expansion and future commercial in this and other technologies.
“This transaction also reinforces CIE Automotive’s commitment to the Mexican automotive market,” said the senior executive of the Basque company.
The closing of the operation is conditioned to the fulfillment of the usual conditions in this type of operations, including the authorization of the Mexican concentration control authorities, the company warns finally.