Tower International has announced the outcomes of divestitures completed during the fourth quarter last year and updated the status of previously announced plans to investigate the potential sale of Tower Europe.
The company also completed the sale of two joint ventures in China on terms consistent with prior projections.
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Cash proceeds received during the fourth quarter were US$48m. Total enterprise value received from the sales, mainly also including the elimination of associated non-controlling interests in Tower’s net assets, totalled US$88m.
No revenue or income from these joint ventures have been included in Tower’s reported results from continuing operations in 2015, as they were accounted for as discontinued operations.
Tower also sold one of its two operations in Brazil during the fourth quarter; this divestiture had not previously been discussed by the company.
Net cash proceeds and enterprise value received from the sale were US$9m. In 2015, the sold business had revenue of around US$30m and a minor adjusted EBITDA loss.
Following these divestitures, Tower projects 2016 revenue in China and Brazil combined of around US$100m.
Regarding the potential sale of Tower Europe, the company says “multiple strategic bidders have been invited to participate in the next phase, based on indicative, non-binding offers received before year-end.”
The process remains on track for Tower to reach a go/no-go decision by around late first quarter 2016.
