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FCA Reaches Agreement to Sell Teksid Cast Iron Components Business to Tupy

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20 December 2019

FCA Reaches Agreement to Sell Teksid Cast Iron Components Business to Tupy
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Fiat Chrysler Automobiles N.V. (MTA: FCA / NYSE: FCAU, "FCA") today announced that it has entered into an agreement with Tupy S.A. for the sale of FCA's global cast iron automotive components business, which is operated through FCA's subsidiary Teksid S.p.A. ("Teksid").

Tupy is a leading player in the cast iron industry specializing in developing and manufacturing highly-engineered structural cast iron components for several applications in capital goods serving different industries.

The proposed sale includes Teksid's cast iron production facilities in Brazil, Mexico, Poland and Portugal, in addition to Teksid's interest in a joint venture in China. Teksid's aluminum business is not included in the transaction and will remain a strategic asset in FCA's portfolio.

The agreement values the business at €210 million enterprise value. Consideration, subject to customary purchase price adjustments will be paid at closing expected in the second half of 2020. The proposed transaction is subject to customary closing conditions, including the receipt of antitrust approvals.
"Tupy has always been a strategic supplier in the cast iron structural components industry. Together, Teksid and Tupy will continue to develop new technologies to support the continued success of our products," said Scott Garberding, FCA's Global Chief Manufacturing Officer. "The proposed transaction represents another important step in the implementation of FCA's business plan".

London, 20 December 2019


FCA Reaches Agreement to Sell Teksid Cast Iron Components Business to Tupy
 
FCA is keep the aluminum business, I guess the importance in light-weighting.
 
Currently not much new engines are using cast iron engine blocks.

Teksid supplies aluminium engine blocks for GSE and 2.2 diesel engines. Not sure who is supplying engine blocks for GME.
 
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