Martinrea International Inc.

Martinrea International Inc.

May 05, 2011 09:05 ET

Martinrea International Inc. Bids for Assets of Honsel AG

TORONTO, ONTARIO--(Marketwire - May 5, 2011) -Martinrea International Inc. (TSX:MRE), a leader in the production of high quality metal parts, assemblies and modules and fluid systems focused primarily on the automotive sector, announced today that it has partnered with Anchorage Capital Group, L.L.C. to bid for the assets of Honsel AG, a leading supplier of aluminum components for the automotive and industrial sectors.

Honsel develops and manufactures complex aluminum and magnesium products using state-of-the-art production technologies including high pressure die-casting, permanent mold and sand casting as well as extruding and rolling. Honsel produces four major product lines: engine products such as engine blocks, cylinder heads and oil pans; transmission products, such as housings and control parts; suspension products, such as engine cradles; and body parts, such as front boards and extrusion profiles.

Honsel has seven production sites globally, including four in Germany, and one each in Spain, Mexico and Brazil, employing approximately 4,000 people.

Honsel is presently in insolvency proceedings in Germany. Pursuant to the insolvency process, offers for the Honsel assets were sought from interested bidders. After extensive diligence and negotiation, Martinrea, with its partner Anchorage Capital Group, has been selected by the administrator in the insolvency proceedings to finalize a purchase agreement. Completion of documentation is anticipated shortly.

Anchorage Capital Group is a registered investment adviser with offices in New York and London. The firm manages private investment funds across the credit, special situations and illiquid investment markets of North America and Europe, with particular focus on defaulted and leveraged issuers. Anchorage acquired a significant portion of Honsel's debt in the secondary market and is very familiar with its assets and operations. Post Honsel's emergence from German insolvency proceedings, Martinrea will own 55% of the company with Anchorage owning the remaining 45%.

The common shares of Martinrea trade on The Toronto Stock Exchange under the symbol "MRE".

Certain statements in this press release, including those relating to the completion of the anticipated acquisition of the assets of Honsel and other statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as "expects", "anticipates", "intends", "plans", "believes", "estimates", or similar expressions, are forward-looking statements within the meaning of securities law.

Contact Information

  • Martinrea International Inc.
    Nick Orlando
    President and Chief Executive Officer
    (416) 749-0314
    (289) 982-3001 (FAX)