Johnson Electric Holdings Ltd. (00179.HK) is acquiring Ontario-based car parts maker Stackpole International for C$867 million (US$659 million), the Hong Kong Economic Journal reported on Wednesday.
The consideration includes C$800 million for the purchase of 100 percent equity and convertible bonds, plus potential costs in the repayment of the target’s secured preference notes that bear a 7.75 percent coupon rate.
The acquisition from S.I. Investors through three of Johnson Electric’s subsidiaries is expected to be completed in the next quarter.
Stackpole International makes precision engine pumps, gearboxes, pumps and powdered metal parts. It has over 2,000 employees in nine production bases in North America, Europe and Asia.
Last year it posted a revenue of C$486.8 million with after-tax non-recurring items-adjusted earnings standing at C$300,000 and net asset value at C$152.7 million.
Johnson Electric expects the deal to boost its sales while strengthening the company’s leading position in the electric motor market of the automobile industry.
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