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.
Go deeper with GlobalData
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.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataFollowing 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.
