CIE acquires Mexico Maquinados and Cortes de Precision

CIE Automotive has acquired 100% of the share capital of Maquinados de Precisión de México and Cortes de Precisión de Mexico.

The value of the transaction (enterprise value) is US$65.5m and will be adjusted on the closing date based on its indebtedness.

The price of the transaction will be paid by CIE Automotive in cash on the closing date and will be financed through currently available cash.

The facilities are in Celaya, in the Mexican State of Guanajuato – the largest automobile corridor in Mexico – and are a supplier for Tier I companies within the automotive sector to which they provide machining components.

In 2019 its EBITDA – gross operating margin – is expected to reach US$18m.

"The rational of this integration is mainly the use of the productive assets, which complement the Group's machining activities in Mexico and which will allow us an important future physical and commercial expansion in this and other technologies," said CIE Automotive CEO, Jesús María Herrera.

"This transaction also reinforces CIE Automotive's commitment with the Mexican automotive market."

The closing of the transaction is subject to fulfilment of usual conditions, including authorisation of anti-trust Mexican authorities.

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