Tower to Sell European Operations to French Supplier

Livonia, Mich.-based metal stamping specialist Tower International Inc. has agreed to sell its European operations to Financiere SNOP Dunois S.A.(FSD), a privately owned French supplier.

The stock deal is valued at €255 million ($290 million), or 5.4 times the U.S. company’s expected 2018 earnings before interest, taxes, depreciation and amortization. The sale is due to be completed in the first quarter of 2019.

Tower's European operations include manufacturing facilities in Belgium, Czech Republic, Germany, Italy, Poland and Slovakia. Full year revenues for the company are projected to be $650 million.

Following the sale, Tower plans to focus its efforts on its core North American business, which has expanded 40% since 2014. The company attributes the growth to increased outsourcing by carmakers and the continued shift in consumer demand from cars to crossovers, SUVs and pickup trucks.

FSD, which was founded in 1991, provides stamping, roll forming, assembly and tooling for body-in-white, interior and engine parts. The company also makes press dies and automatic presses.