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Metaldyne Eyes Acquisition

Metaldyne Corp. of Plymouth, MI, will double its European business if it acquires VCST Industrie early this year as expected. The two suppliers signed a letter of intent in September. A spokesman at VCST in Belgium says the due diligence process should conclude in early 2003. Only 15%, or $210 million, of Metaldyne's $1.4 billion in revenues in 2002 will come from Europe. VCST is in the same business

Metaldyne Corp. of Plymouth, MI, will double its European business if it acquires VCST Industrie early this year as expected.

The two suppliers signed a letter of intent in September. A spokesman at VCST in Belgium says the due diligence process should conclude in early 2003.

Only 15%, or $210 million, of Metaldyne's $1.4 billion in revenues in 2002 will come from Europe. VCST is in the same business areas (engines, chassis and drivelines) and had revenues of $175 million last year, mostly in Europe.

Metaldyne is strong in making forgings, and VCST has expertise in machining. Metaldyne has a contract to provide a structural subassembly for a transmission in 2005, and by adding VCST's machining capability, Metaldyne will provide more of the value content in the module.

VCST also makes the gears inside the Ford 5-speed transmissions used in the Explorer and F-150, as well as gears for continuously variable transmissions made by Zahnradfabrik Friedrichshafen AG.

TAGS: Vehicles
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