Overview of the Acquisition
Nemak, a Mexican manufacturer of metal components for the automotive industry, has announced the acquisition of the automotive business of GF Casting Solutions, a Swiss company specializing in lightweight casting components. The deal includes a research and development center in Switzerland and nine production plants located in Austria, China, Romania, Germany, and the United States, adding approximately 2,500 employees to Nemak’s workforce.
About GF Casting Solutions
GF Casting Solutions is part of Georg Fischer AG (GF), which is undergoing transformation to become a provider of flow solutions for the industrial, infrastructure, and building sectors. The acquisition will enable Nemak to strengthen its technological capabilities, diversify its customer base, expand its global presence, and reinforce its position in the transition to sustainable mobility.
Product Portfolio and Value
The acquired product portfolio consists of high-complexity aluminum and magnesium components, with 80% targeted at electromobility, structures, and chassis applications. The transaction values the target company at $336 million, with a net debt-to-proforma EBITDA ratio expected to be between 2.5 and 2.6x at the end of 2025.
Impact and Benefits
Armando Tamez, Nemak’s CEO, stated that the acquisition will significantly enhance Nemak’s technological capabilities and allow the company to expand its high-growth, non-ICE (internal combustion engine) component offerings, particularly in structural, chassis, and electric vehicle applications. Tamez also highlighted that GF Casting Solutions’ reputation for excellence and reliability aligns with Nemak’s values and long-term vision, reinforcing their commitment to innovation and value creation for customers.
Transaction Details and Timeline
The acquisition is expected to close in the second half of 2025, subject to regulatory approvals and other standard conditions. Nemak has a global presence with 40 manufacturing plants in 14 countries, situated near its key customers.
Nemak’s Performance and Strategy
Nemak provides innovative solutions for the global automotive industry’s lightweighting efforts and specializes in developing and manufacturing aluminum components for internal combustion engines. The company reported strong performance in the second quarter of 2025, with a 12% increase in flow to $182 million compared to the same period in 2024. Nemak has emphasized organizational efficiency initiatives and cost control, including manufacturing and labor productivity optimization across all regions in recent years.
Key Questions and Answers
- What is Nemak acquiring? Nemak is acquiring the automotive business of GF Casting Solutions, which includes a research and development center in Switzerland and nine production plants in Austria, China, Romania, Germany, and the United States.
- What does the acquisition cost? The transaction values the target company at $336 million.
- How many employees will join Nemak? Approximately 2,500 employees from GF Casting Solutions will join Nemak following the acquisition.
- What is the product portfolio composition? The acquired product portfolio consists of high-complexity aluminum and magnesium components, with 80% targeted at electromobility, structures, and chassis applications.
- When is the acquisition expected to close? The acquisition is expected to close in the second half of 2025, subject to regulatory approvals and other standard conditions.
- How will this acquisition benefit Nemak? The acquisition will strengthen Nemak’s technological capabilities, diversify its customer base, expand its global presence, and reinforce its position in the transition to sustainable mobility.
