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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Tower International Inc | NYSE:TOWR | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 31.00 | 0 | 01:00:00 |
LIVONIA, Mich., March 1, 2019 /PRNewswire/ -- Tower International, Inc. (NYSE: TOWR), a leading manufacturer of engineered automotive structural metal components and assemblies, today announced it has completed the sale of all of its European Operations to Financière SNOP Dunois S.A.(FSD), a privately owned French automotive supplier.
The purchase price represents an Enterprise Value of €255 million which represents an EV / Adjusted EBITDA multiple of 5.4x 2018 full year earnings.
"We are pleased to have completed the divestiture of Tower's European operations at a valuation well above our current trading multiple. The divestiture reduces Tower's net leverage to less than 1 times Adjusted EBITDA, giving Tower the flexibility to continue to profitably grow our business, maintain a conservative balance sheet and continue to return of capital to our shareholders," said CEO Jim Gouin. "I would like to thank all of the colleagues from Tower Europe for their great contributions to Tower International over the years and wish them continued success as they become part of FSD."
The divestiture resulted in net cash proceeds of approximately $250 million after payment of transaction costs and fees and the unwinding of the Euro denominated swaps related to
Tower's Term Loan. Following the closure of the transaction, Tower repaid $50 million of outstanding Term Loan B indebtedness. This repayment, coupled with Tower's voluntary reduction to the Term Loan in July 2018 represent repayments totaling $100 million.
Gouin continued, "Since 2014, Tower's North American business has grown by more than 40 percent in a relatively flat production environment as we have benefitted from the industry's shift from passenger cars to trucks and SUVs as well as OEM outsourcing. Tower is well positioned to continue to benefit from these trends and current projections for full-year 2020 represent continued above market revenue growth, improved Adjusted EBITDA margins and significant free cash flow."
Forward-Looking Statements and Risk Factors
This press release contains statements which constitute forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, including but not limited to statements regarding the completion of the sale transaction and debt repayment described in this press release, the timing and consequences of those transactions, projected enterprise value, positioning, projected truck revenues and the outlook for revenue, Adjusted EBITDA Margin, and net leverage. The forward-looking statements can be identified by words such as "anticipate," "believe," "plan," "estimate," "expect," "intend," "project," "target," and other similar expressions. Forward-looking statements are made as of the date of this presentation and are based upon management's current expectations and beliefs concerning future developments and their potential effects on us. Such forward-looking statements are not guarantees of future performance. The following important factors, as well as risk factors described in our reports filed with the SEC, could cause our actual results to differ materially from estimates or expectations reflected in such forward-looking statements:
We do not assume any obligation to update or revise the forward-looking statements contained in this press release.
Contact:
Derek Fiebig
Executive Director, Investor & External Relations
(248) 675-6457
fiebig.derek@towerinternational.com
View original content:http://www.prnewswire.com/news-releases/tower-completes-value-creating-sale-of-its-european-operations-300804627.html
SOURCE Tower International
Copyright 2019 PR Newswire
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