J L French Automotive Castings says it has entered into a definitive agreement to be acquired by Alfa subsidiary, Tenedora Nemak, subject to closing conditions, including regulatory approvals.
“We feel this acquisition will allow J L French to thrive under the new ownership of a company that has a high stake in our success,” said JL French CEO, president and chairman, Tom Musgrave. This transaction will provide long-term financial support for J L French with an automotive supplier parent company.”
Nemak, founded in 1979 and based in Monterrey, Mexico, is a supplier in the aluminium automotive components business, with a focus on engine blocks and cylinder heads.
Nemak operates facilities located in Asia, Europe and North and South America and employs nearly 18,000 employees worldwide.
“This acquisition offers attractive growth opportunities in aluminium transmission components,” said ALFA president, Alvaro Fernandez. “Furthermore, J L French’s technology will facilitate our entrance into other high-value added products such as suspension and structural parts.”
J L French operates six vertically integrated manufacturing facilities throughout the world and employs more than 1,900 employees.
No price was disclosed for the transaction.