Martinrea International Inc. Acquires Assets from Honsel AG

Martinrea International Inc. completed the acquisition of certain assets of Honsel AG, a German-based leading supplier of aluminum components for the automotive and industrial sectors, to form the Martinrea Honsel Group. Martinrea partnered with Anchorage Capital Group, L.L.C. (“Anchorage”) in the transaction.

Martinrea owns 55% of the Martinrea Honsel Group, with Anchorage owning the remaining 45%. Anchorage is a registered investment adviser with offices in New York and London.

Honsel develops and manufactures complex aluminum and magnesium products using state-of-the-art production technologies including high pressure die-casting, permanent mold and sand casting as well as extruding and rolling. Initially, the purchase transaction envisaged the purchase of all of Honsel’s operations, which included plants in Germany located in Meschede, Nuremberg, Soest and Nuttlar, as well as Madrid, Spain; Queretaro, Mexico and Monte Mor, Brazil. The Nuremberg facility, primarily specializing in transmission parts, has been acquired by ZF Friedrichshafen AG (“ZF”), the primary customer of the facility; Martinrea Honsel comprises the remaining facilities, including the head office in Meschede. The plants that comprise the Martinrea Honsel Group, net of the Nuremburg operations, generated revenues of approximately €500 million ($680 million) during the past twelve months, and employed approximately 3,200 people. The Nuremberg operations generated revenues of approximately €120 million ($163million) during the past twelve months, and employed approximately 800 people.

After factoring in the Nuremberg transaction, where ZF acquired the Nuremberg facility along with related liabilities, the purchase price for the acquisition of the plants that comprise Martinrea Honsel was approximately €95 million ($129 million). The purchase price includes cash consideration of approximately €61 million ($83 million), with the balance in assumed liabilities as currently estimated.

Wildeboer Dellelce LLP acted as Canadian counsel for Martinrea with a team that included Rob Wortzman, Robert Fonn (corporate/securities), Chris Partridge and Lisa Cunningham (secured lending) and Kevin Fritz (tax).