Target Company: Wescast Industries Inc. (“Wescast”) (TSX:WCS.A)
Client/Purchaser: Sichuan Bohong Industry Co., Ltd. (“Bohong”)
Transaction Date: March 2013
Transaction Value: $195 million
Company Description: Wescast, founded in 1902, is a world-leading supplier of cast exhaust manifolds for passenger cars and light trucks. In addition to other products, Wescast designs, casts, machines and assembles exhaust system components, primarily exhaust manifolds, turbo charger housings and integrated turbo manifolds for automotive original equipment manufacturers and Tier 1 customers for the car and light truck markets in North America, Europe, Asia, Africa, South America and Australia. Wescast employs approximately 2,000 people in 7 production facilities and 5 sales and design centres in Canada, Hungary, the United States, Germany, Japan and China. Wescast also has sales and technical design representation in the United Kingdom and France. Wescast’s revenues were $227.3 million for the year ended December 31, 2011 and $224.2 million for the nine months ended September 30, 2012.
Transaction: Bohong acquired, by way of a plan of arrangement under the Business Corporations Act (Ontario), 100% of the issued and outstanding capital of Wescast.
Role of Evans & Evans: Evans & Evans, Inc. initiated the transaction and acted as Financial Advisor to Bohong providing various services including:
- Identified potential acquisition targets for Bohong in the North American automotive industry
- Identified Wescast as a potential acquisition for Bohong and initiated the transaction between the two parties
- Carried out due diligence and valuation analysis on Wescast
- Advised on deal structure and assisted in the negotiations with respect to the Bohong-Wescast transaction