Metaldyne Corporation, Plymouth, Mich., a supplier of powertrain and chassis systems and components, said its previously announced acquisition by Asahi Tec Corp., Shizuoka, Japan, has been completed.

The transaction was delayed in recent months while consent from Metaldyne’s noteholders was obtained. Its completion marks a deal worth approximately $1.2 billion, including assumption of Metaldyne's debt but excluding consent fees for the existing bonds and Asahi Tec transaction expenses. Asahi Tec's major shareholder, RHJ International, Brussels, Belgium, contributed $85 million of its own cash to the Metaldyne deal.

As part of the transaction, Asahi Tec is investing $205 million of equity in Metaldyne and Metaldyne's existing credit and receivables facilities are being refinanced with new credit facilities of $670 million, comprised of a $150 million revolving credit facility, a $60 million synthetic letter of credit facility and a $460 million term loan facility of which $25 million will be available on a delayed draw basis after the merger. The $205 million of equity investment is $5 million higher than originally disclosed to cover higher expenses associated with the transaction.

"Globalization has changed the world," said Tim Leuliette, co-chairman and co-CEO of Asahi Tec and chairman and CEO of Metaldyne. "Metaldyne and Asahi Tec have responded by creating a new paradigm for the auto industry. We have combined to form a strong, globally competitive company that understands and supports global markets, cultures and customers and delivers leading-edge products worldwide."

Metaldyne will operate as a subsidiary of Asahi Tec and keep its name. Leuliette continues as chairman and CEO of Metaldyne. He also serves as co-chairman of Asahi Tec with Shoichiro Irimajiri and becomes co-CEO with Akira Nakamura, who continues in his role as president of Asahi Tec. In addition, Leuliette joins Irimajiri as an industrial partner in RHJI.