Chinese company to acquire Ontario auto-parts maker Wescast for $195M
BRANTFORD, Ont. — A subsidiary of Sichuan Bohong Industry Co. of China has agreed to acquire struggling Canadian auto-parts maker Wescast Industries Inc. for $195 million.
The deal was announced by Wescast early Friday.
Wescast, based in the southwestern Ontario city of Brantford, has been in talks with Bohong for several months.
An initial agreement to sell the company fell apart in September 2011 after the Chinese buyer failed to make good on a $2 million deposit.
Wescast is the world’s leading supplier of cast exhaust manifolds for passenger cars and light trucks.
Its shares closed down 29 cents at $5.60 on the Toronto Stock Exchange on Thursday.