Released on September 6, 2011

Wescast Industries Inc., Brantford, Ontario, Canada, has entered into an agreement to be purchased by Sichuan Bohong Industry Co. Ltd., Sichuan, China.

The company recently announced it has signed a memorandum of understanding to sell 100% of the issued and outstanding capital of Wescast at approximately $13.60 per share. According to a press release issued by the company, the sale came about as a result of a recent “strategic alternatives review.”

“We believe this would be an attractive outcome for Wescast's shareholders,” said Jim Barton, chairman of the special committee of the Westcast board. “We will work diligently with Bohong towards entering into a definitive and binding arrangement agreement and completing the acquisition."

While the acquisition is still subject to approval by regulatory agencies and Wescast’s shareholders, Bohong has provided Wescast a deposit of $2 million. The Chinese automotive supplier is in the process of obtaining the remaining funding required for the transaction.

“We believe the two companies are highly complementary in terms of products, services and operating values,” said Ed Frackowiak, Wescast’s chairman and CEO. “In particular, we are excited by the potential to pursue future opportunities globally."

Wescast is a leading supplier of cast exhaust manifolds for passenger cars and light trucks. The company employs approximately 1,800 people in seven production facilities and five sales and design centers in Canada, Hungary, the U.S., Germany, Japan and China, and it has sales and technical design representation in the U.K. and France.

Wescast opened its Chinese operation in 2008, and in late 2010, it expanded its turbocharger production capabilities at its Asian and European facilities. Bohong Group has more than 40 wholly-owned or holding subsidiaries and operates multiple metalcasting facilities.

“Bohong intends to build on Wescast's long history and believes that this acquisition would assist Bohong and China's automobile industry to reach a new platform in servicing global customers," said Dong Ping, chairman and CEO of Bohong.