Metaldyne Performance Group Inc. (MPG), the holding company of Powder Metallurgy automotive parts maker Metaldyne LLC, has announced terms for an IPO to raise $300 million. MPG, which is owned by private equity firm American Securities, is offering 15.4 million shares at a price range of $18 to $21. As stated on Renaissance Capital’s website, at the midpoint of the proposed range MPG would command a market value of $1.3 billion.
In August this year MPG announced the merger of Grede Holdings LLC, HHI Group Holdings, and Metaldyne LLC, forming a new holding company. At the time it was stated that the merger was designed to enable Grede, HHI and Metaldyne, three established automotive suppliers, to strengthen their market position across metal forming technologies, expand their global footprints and leverage certain cross-selling opportunities that exist between the companies.
Metaldyne LLC manufactures a range of components for the global light vehicle markets including Powder Metallurgy connecting rods and VVT components. The company employs more than 4,000 people at 26 facilities in 13 countries.
HHI manufacturers forgings, machined products and Powder Metallurgy components for OEM and Tier I suppliers, principally in the North American light vehicle market. Under HHI are several company brands including Cloyes Gear, FormTech, Jernberg, and Impact Forge.
Grede manufactures cast, machined and assembled components for the light and commercial vehicle and industrial (agriculture, construction, mining, rail, wind energy and oil field) end-markets. Under Grede are several company brands, including NovoCast and Teknik.