Released on October 6, 2011

Cast and forged wheel maker Hayes Lemmerz International, Northville, Mich., has entered into an agreement to be purchased by Iochpe-Maxion S.A., Sao Paulo, Brazil.

According to the terms of the agreement, the global wheels business of Hayes Lemmerz will be purchased in an all-cash transaction for approximately $725 million and combined with the wheels businesses of Iochpe-Maxion.

“One of our principal strategies is to sustainably grow our core business internationally,” said Dan Ioschpe, the company’s chief executive officer.  “This transaction will position us well to partner with customers to offer technologically-advanced products and outstanding services to meet their needs in every major geographic region for years to come.”

The acquisition, which is expected to close during the first half of 2012, is subject to closing conditions, approval of the stockholders of Hayes Lemmerz and Iochpe-Maxion, and regulatory approvals. The companies will continue to operate independently until the transaction is completed.

“Automotive and commercial vehicle manufacturers are expanding globally and seeking global suppliers with the resources to invest and grow with them,” Ioschpe said. “Vehicle manufacturers have many choices when it comes to the wheels they offer their customers, including both aluminum and steel wheels.”

The two companies said they are developing integration plans that build on their cultural similarities and best business and product development practices. According to the press release, management of the new company will be drawn from current management, and specific management appointments will be announced prior to closing. The combined entity will have manufacturing locations in 13 countries and a presence in every major automotive region.

“We look forward to a promising future with a long-term strategic shareholder like Iochpe-Maxion,” said Fred Bentley, chief operating officer of Hayes Lemmerz.  “This transaction is in the best interests of our customers. [It] is also in the best interests of our suppliers.”