Figma Shares Indicated To Open $105/$110
Investing.com -- George Fischer has sold its Casting Solutions division to Mexican automotive supplier Nemak for an enterprise value of $336 million (CHF 272 million).
The deal represents a fiscal year 2024 EV/EBIT multiple of 6.5x. Under the agreement, $160 million will be paid at closing, with the remainder consisting of assumed operating and financial liabilities, plus additional installments to be paid over five years after closing.
The residual payments are not subject to any business performance-related conditions.
While the sale price came in below market expectations of CHF 300-350 million, it excludes certain assets not included in the transaction. The deal marks the final step in George Fischer’s transition to becoming a pure-play Flow Solutions business, which is expected to deliver higher earnings resilience and improved profitability.
As a result of the transaction, George Fischer will record a significant one-off, non-cash book loss, which includes various adjustments, recycling of goodwill, and currency translation differences.
The iron foundry in Leipzig, Germany, along with aerospace and industrial gas turbine operations in Novazzano and Stabio, Switzerland, and Arad, Romania, were not included in the sale. George Fischer has already initiated the divestment process for these discontinued operations.
The company’s shares rose 3.2% following the announcement.
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