On 20 January 2012 AVTOVAZ JSC completed the sale of its existing steel wheels production business to the German group mefro wheels.
In accordance with the sale and purchase agreement, through its Russian holding company mefro wheels Russia OOO, the German side acquired a 100% share in mefro wheels Russia Plant Togliatti OOO, founded by AVTOVAZ to implement the transaction. The acquirer obtained the approval of the Federal Antimonopoly Service of Russia in 2011.
mefro wheels is one of Europe's leading manufacturers of steel wheels, and holds advanced technologies and has decades of experience in manufacturing high quality products. Production capacity at its facilities in Germany, France, Turkey, Argentina and Russia exceeds 25 million passenger car wheels and 5 million truck wheels. The company’s current investment plan for the next few years involves mefro wheels Russia OOO’s investing over 2 billion rubles in facilities modernisation and expansion of the production capacity through its three Russian subsidiaries. The investment will establish a strong local supplier for the Russian automotive market with newest technology and sizeable production capacity.
mefro wheels Russia Plant Togliatti OOO will meet 100% of AVTOVAZ demand for steel wheels and supply products to other international car manufacturers operating in Russia, contributing to the required level of local content.
All the AVTOVAZ personnel employed in wheel production will continue to work at mefro wheels Russia Plant Togliatti OOO.
mefro wheels was supported in this transaction by goetzpartners Corporate Finance as M&A consultants and Noerr LLP as legal advisers.
The parties have agreed not to disclose the value of the transaction.