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MD Investors Acquires Metaldyne Forging Group

October 20, 2009

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MD Investors completed the acquisition of substantially all of Metaldyne’s assets under a court-supervised auction process. MD Investors acquired Metaldyne’s European Forging Products Group, which includes operations in Zell, Germany; Nürnberg, Germany; and Oslavany, Czech Republic. MD Investors also purchased certain assets related to Metaldyne's Sintered Products, Vibration Controls Products and Powertrain Products Groups, including its balance shaft module, driveline machining and assembly, and tubular-products operations. In addition, certain chassis-related assets were acquired.

MD Investors, a group comprised of Metaldyne's existing term lenders led by The Carlyle Group and Solus Alternative Asset Management LP, paid approximately $40 million in cash subject to adjustments under the asset purchase agreement, plus the assumption of certain debt and liabilities. The new company will operate under the name Metaldyne, LLC. Metaldyne and its U.S. subsidiaries filed for bankruptcy primarily as a result of excess leverage and the resulting interest expenses, plus excessive pension and lease costs, all of which resulted in strained liquidity by the unusually low production volumes in the North American automotive industry.


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