The Spanish automotive group CIE Automotive announced the acquisition of Mexican companies, Machines of Precision of Mexico and Cortes of Precision of Mexico, dedicated to the machining of auto parts, for US $65.5 million.
The price of the operation will be adjusted at its closing date, depending on its indebtedness. The company will be financed through the cash remnant it currently has.
The acquired facilities are located in the city of Celaya, in the state of Guanajuato, which Cie qualifies as “the largest automobile corridor in Mexico”.
The acquired companies are suppliers of “Tier 1 companies in the automotive sector, to which they supply a wide range of mechanized components”, explained the Spanish company.
Cie Automotive expects the acquired companies to record an operating profit before depreciation of US $18 million in 2019.
Jesus Maria Herrera, CEO of the firm, explained that the purpose of the purchase of these companies is “the use of the set of productive assets”, which complement the machining activities of the group in Mexico and allow an important physical and commercial expansion future in this and other technologies.
CIE Automotive is a global supplier of components and sub-assemblies for the automotive market and has as clients several of the best-known automobile groups in the world.