AK Steel signed an agreement to acquire Precision Partners Holding Company, a leading North American automotive market company that provides engineering, tooling, die design and hot and cold stamped steel parts, for $360 million in cash. Precision Partners is headquartered in Ontario, and employs more than 1,000 employees, including about 300 engineers and skilled tool makers, across eight plants in Ontario, Alabama and Kentucky.
AK Steel said that the acquisition advanced its core focus on the high-growth automotive lightweighting space and its position in advanced high strength steels.
Precision Partners specializes in the design and engineering of tooling and die making, and the stamping of complex, hard-to-manufacture automotive components, with a broad portfolio of highly engineered solutions.
The transaction is subject to customary closing and regulatory approvals in the US and Canada. Subject to the conclusion of the regulatory review, the closing is expected to occur during the third quarter of 2017. Credit Suisse is acting as financial advisor to AK Steel and Weil Gotshal & Manges LLP is serving as its legal advisor.