Sichuan Bohong Industry Co., Ltd. Acquires Wescast Industries Inc.
|Areas||Asia Practice, Litigation|
Goodmans represented the Special Committee of the Board of Directors of Wescast Industries Inc. (“Wescast”) in connection with the acquisition of Wescast by Sichuan Bohong Industry Co., Ltd. (“Bohong”) pursuant to a statutory plan of arrangement under the Business Corporations Act (Ontario). Bohong, through its wholly-owned subsidiary, acquired all of the issued and outstanding capital of Wescast, which, together with the repayment by Bohong of Wescast’s indebtedness, certain other liabilities and an investment in working capital, values the total transaction to Bohong at approximately $195 million. China Development Bank Corporation provided Bohong with acquisition financing.
Wescast is the world's leading supplier of cast exhaust manifolds for passenger cars and light trucks. In addition to other products, Wescast designs, casts, machines and assembles exhaust system components, primarily exhaust manifolds, turbo charger housings and integrated turbomanifolds for automotive original equipment manufacturers and Tier 1 customers for the car and light truck markets in North America, Europe, Asia, Africa, South America and Australia.
Bohong Group is a group of companies engaged in automobile 4S operations (sales, spare parts, service and survey), manufacturing, real estate and new energy. Bohong has an operations base in Chengdu, the capital of Sichuan Province and a strategic center in Beijing.