AK Steel has signed an agreement to acquire Precision Partners Holding, a North American automotive company providing engineering, tooling, die design and hot and cold stamped steel parts, for US$360m in cash.
Precision Partners is headquartered in Ontario, and employs more than 1,000 staff, including around 300 engineers and tool makers, across eight plants in Ontario, Alabama and Kentucky.
Precision Partners specialises in the design and engineering of tooling and die making, as well as the stamping of complex automotive components, with a portfolio of engineered solutions.
“The acquisition of Precision Partners underscores AK Steel’s commitment to expand our portfolio of high-value products and processes,” said AK Steel CEO, Roger Newport.
“Precision Partners has a highly experienced leadership team and is an innovator in the markets they serve. This acquisition will combine the best of both companies, bringing AK Steel’s innovation in materials and manufacturing together with Precision Partners’ tooling and stamping knowledge and technology, to create a leader in the steel industry.”
AK Steel intends to finance the acquisition with a combination of debt and equity securities.
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The transaction is subject to customary closing and regulatory approvals in the US and Canada.
Subject to the conclusion of the regulatory review, the closing is expected to occur during the third quarter of this year.