Loading...
Loading...
From Earlier: Tower International, Inc.
, a leading integrated global manufacturer of engineered structural
metal components and assemblies, today announced that it sold its Korean
operations in order to strengthen its overall business and realize shareholder
value.
Under the agreement reached earlier today, Tower sold 100% of the stock in its
wholly-owned Korean subsidiary to SECO, a privately owned Korean auto parts
supplier. The sold operations include 5 manufacturing plants, a tooling
plant, and a headquarters/technical center. Financial results for full year
2012 were projected at revenue of $345 million, Adjusted EBITDA of $25
million, and free cash flow of negative $5 million.
Tower will receive an estimated $47 million in cash (50% at closing, 40%
January 2013, 10% December 2013), and the buyer will assume net debt that
averaged $98 million for the last twelve months through November, representing
a transaction enterprise value of approximately $145 million or 5.8 times
projected 2012 Adjusted EBITDA. This transaction multiple is significantly
higher than the present multiple for Tower's common stock, which Tower
estimates at approximately 3.4 times based on yesterday's closing price.
The transaction also represents significant balance sheet strengthening and
de-risking for Tower. On a pro-forma basis excluding Korea, Tower's average
net debt for the last four quarters through September 30, 2012 would be
reduced by $128 million or 26%.
Loading...
Loading...
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Posted In: NewsAsset Sales
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in