MascoTech to buy steel-parts plants
MascoTech Inc. has reached a tentative agreement to buy some of Teksid S.p.A.'s steel component businesses. Operations in Avigliana, Italy, and Belo Horizonte, Brazil, would form new companies in which Teksid would be a partner. Those businesses generated sales of $150 million last year. The steel division makes engine, drivetrain and chassis components for Fiat. If successful, the deal will be completed late this year.
VALVES - Eaton Corp. will build a plant near Krakow, Poland, to supply Fiat with engine valves. Eaton plans to invest $5 million in Poland and employ 150 people there. Sales are expected to top $20 million annually by 2000.
COLLISION WARNING - Regal One Corp. of Los Angeles has acquired the assets of Safesight Inc. in a stock-for-stock transaction. Safesight makes collision warning devices for cars, trucks and RVs. The company will develop micropower impulse radar. An introduction is planned for late this year or early in 1998.
SEATS - Lear Corp.'s largest shareholder has completed plans to sell 10.3 million shares of stock for $40 per share. The sellers will be merchant banking partnerships affiliated with Lehman Brothers Holdings Inc. Lear itself is not selling any shares. About 8.2 million shares will be offered in North America; the rest will be sold overseas.
STAMPING - Oxford Automotive Inc. has issued $125 million in 10-year corporate notes to finance general operations and acquisitions. The notes were sold by an underwriting team headed by Salomon Brothers Inc. and co-managed by Merrill Lynch & Co. Oxford is a metal stamper based in Bloomfield Hills, Mich.
STARTERS - Delco Remy America Inc. has formed a subsidiary, American Metal Fabrication Inc. The operation will organize manufacturing, engineering and tooling of heavy-duty starters under one roof. Delco will move that operation out of GM-owned facilities to two buildings it has purchased in Anderson, Ind.
PLASTICS - Security Plastics Inc. is building an injection molding plant in Chihuahua, Mexico. The company will complete the factory this summer. The plant will house six molding machines, with expansions planned over the next two years. The factory will employ 300 workers and eventually will house 20 molding machines. Security Plastics is based in Miami Lakes, Fla.
ENGINE PARTS - Tesma International Inc. reported sales of $151 million Canadian ($108.6 million) for the three months ending April 30, up 25 percent from the same period a year earlier. Net income totaled $8 million Canadian ($5.8 million), up 26.9 percent. Profits were buoyed by lower taxes and higher exports to overseas customers. Tesma is a subsidiary of Magna International Inc.
TAKEOVERS - Spartan Motors Inc.'s board of directors will allow shareholders to buy a new issue of preferred stock in the event of an unfriendly takeover attempt. The plan will be triggered if any investor acquires 15 percent or more of common stock, or announces a tender offer for 30 percent of Spartan's stock. Spartan, based in Charlotte, Mich., makes custom chassis for motor homes, fire trucks, buses and other vehicles.