JOINVILLE, Brazil, July 1, 2021 /PRNewswire/ -- Tupy S.A. ("Tupy"), a Brazilian multinational company dedicated to designing and manufacturing structural components, announces today the conclusion of a revised agreement with Stellantis NV ("Stellantis") to acquire the Brazilian and Portuguese cast iron components operations of Teksid SpA ("Teksid"), a wholly owned subsidiary of Stellantis.
Tupy had announced on December 2019 an agreement to acquire the global cast iron components operations of Teksid. Based on review and input from U.S. competition authorities, Tupy and Stellantis agreed to revise the transaction. In addition, Tupy has decided that a revised perimeter for the transaction will focus on assets with higher strategic fit. Therefore, Tupy will not proceed with the acquisition of Teksid's Mexican, Chinese and Polish operations and Teksid's offices in Italy and in the United States. The Enterprise Value for the new perimeter is €67.5 million.
"The conclusion of this negotiation is a very important step for Tupy, and we are glad about the potential synergy among the companies. The transaction is part of Tupy's global growth strategy and increases its capacity to manufacture blocks and heads geared for capital goods," proclaims Fernando Cestari de Rizzo, the CEO of Tupy. "The exchange of knowledge among people will be as important as the asset combination, taking into account that both companies have teams made up of highly skilled and seasoned professionals, who will contribute to the development of innovative technologies, as the history of Tupy and Teksid has already shown," concluded Fernando.
The transaction has been approved by Tupy's Board of Directors and is expected to be completed in the fourth quarter of 2021. The transaction will comply with the conditions of the previous approval received from the Brazilian competition authority in April 2021.
Tupy is a Brazilian company specialized in developing and manufacturing highly engineered structural cast iron components applied to complex metallurgical and geometrical components extensively used in capital goods that serve freight transport, construction industry, agriculture and many others industrial applications. These solutions contribute to the improvement of life standards such as, sanitation, drinking water, health, housing and the production and distribution of food. The technological innovation involved in our production and development processes is the company's specialty that dates back more than 80 years. Tupy's manufacturing facilities are located in Brazil and Mexico.