Rival Metal-Forming Company to Buy Tower International

Autokiniton Global Group, which was created 13 months ago by KPS Capital Partners, has agreed to buy Tower International Inc. for about $900 million.

Both Michigan-based companies produce metal-formed components and assemblies for the auto industry.

The all-cash transaction, which is expected to be completed within three months, represents a 70% premium to Tower's closing stock price yesterday. Terms of the agreement give Tower 35 days to shop for a better deal.

Livonia, Mich.-based Tower posted sales of $1.6 billion last year. Autokiniton acquired New Boston, Mich.-based L&W Inc., another metal fabricator, last year.