Tupy signs agreement to acquire Teksid’s cast iron operations in Brazil and Portugal
July 1, 2021
Tupy S.A. (“Tupy”), a Brazilian multinational company dedicated todesigning and manufacturing of structural components, announces today the conclusion of the review of the agreement with Stellantis NV (“Stellantis”) for the acquisition of the Brazilian and Portuguese cast iron structural components operations of Teksid SpA (“Teksid”), a wholly owned subsidiary of Stellantis.
Tupy announced in December 2019 an agreement to globally acquire Teksid’s cast iron components operations. Based on the review and comments from the United States antitrust authorities, Tupy and Stellantis have agreed to review the transaction. In this new perimeter, the Company decided to acquire the most strategically aligned assets, and decided not to proceed with the acquisition of the plants in Mexico, China, Poland, and the administrative structures located in Italy and the United States. The Enterprise Value to 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 the Company’s global growth strategy and increases its capacity to manufacture blocks and heads geared for capital goods” celebrates 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 the Company’s Board of Directors and should be concluded between in the fourth quarter of 2021. The commitments already undertaken before the Brazilian antitrust authority, in April of this year, will be fully met.
A Brazilian multinational company that designs and manufactures cast iron structural components with highly complex geometry and metallurgy. These engineering solutions are applied to the transportation, infrastructure, agribusiness and energy generation sectors, contributing to the quality of life of people, promoting access to health, basic sanitation, drinking water, and the production and distribution of food worldwide. The technological innovation involved in the design and manufacture of these parts has been the Company’s specialty throughout its more than 80 years of operations. The production is concentrated in the Brazilian factories located in Joinville/SC and Mauá/SP, and abroad, in the cities of Saltillo and Ramos Arizpe, Mexico. Tupy also has commercial offices in São Paulo, the USA and Germany.