July 2, 2007 -- Hayes Lemmerz International announced on Friday (29 June) the sale of its wholly owned subsidiary, MGG Group B.V. to an affiliate of the ECF-Group, a privately held company based in Switzerland and the Netherlands, according to PRNewswire. "We are pleased that we have completed this transaction," said Curtis Clawson, president, chief executive officer (CEO) and chairman of the board of Hayes Lemmerz.
He further stated "By divesting this non-core business and focusing on high growth/high return markets, we are continuing to execute our strategic business plan and our drive toward profitability and positive free cash flow," adding that "We have enjoyed our relationship with the MGG Group for many years and we are confident that they will be a valuable addition to the buyer." While financial terms of the transaction were not disclosed, Hayes Lemmerz did announce that MGG's annual sales for fiscal year (FY) 2006 were approximately US$140 million. Significance: MGG Group has three production facilities, located in Belgium and the Netherlands, which manufacture several automotive components, such as heat exchangers for gas-fired boilers, intake manifolds and other aluminium components for the European automotive, commercial vehicle and other industries. Hayes Lemmerz does not expect this transaction to have a material impact on its previously released FY 2007 guidance.
Source: Global Insight Daily Analysis
Source: Factiva
