Sheboygan-based J.L. French Automotive Castings Inc has entered into a definitive agreement to be acquired by Tenedora Nemak S.A. de C. V. (“Nemak”), a subsidiary of ALFA, S.A.B. de C.V.
The transaction is subject to customary closing conditions, including regulatory approvals. The purchase price of the transaction was not disclosed.
Tom Musgrave, J.L. French’s chief executive officer, president and chairman, said, “We feel that this acquisition will allow J.L. French to thrive under the new ownership of a company that has a high stake in our success. This transaction will provide long-term financial support for J.L. French with an automotive supplier parent company. We feel that this is the right next step for J.L. French and its employees.”
J.L. French is a supplier of automobile components to customers in the transportation industry. Founded in 1968, J.L. French operates six vertically integrated manufacturing facilities throughout the world and employs more than 1,900 employees. J.L. French’s facilities are located in North America, Europe and Asia.
Nemak, founded in 1979 and based in Monterrey, Mexico, is a supplier in the aluminum automotive components business, with a focus on engine blocks and cylinder heads. Nemak operates facilities located in Asia, Europe and North and South America, and employs nearly 18,000 employees worldwide.
Alvaro Fernandez Garza, ALFA’s president, said, “This acquisition offers attractive growth opportunities in aluminum transmission components. Furthermore, J.L. French’s technology will facilitate our entrance into other high-value added products, such as suspension and structural parts.”
Manuel Rivera, Nemak’s CEO, said, “With this transaction, we will broaden our product portfolio to better serve our customers’ needs.”
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