FormTech Industries Buys Metaldyne's Forging Operations

ROYAL OAK, Mich., March 15 -- FormTech Industries LLC has acquired Metaldyne's North American forging operations.

With the acquisition, FormTech becomes North America's largest independent provider of automotive forgings. The new company, with more than 1,000 employees in Indiana, Michigan and Ohio, will produce gears and shafts for transmissions and transfer cases, as well as ring gears, clutch housings, bearing races, stem pinions, wheel spindles and other parts.

The primary markets served include automotive, heavy truck and industrial. The business generated net sales in the range of $350 million in the 2005 calendar year.

In addition to its headquarters in Royal Oak, Mich., FormTech will operate former Metaldyne facilities in Fraser, Detroit, and Troy, Mich.; Canal Fulton and Minerva, Ohio, and Fort Wayne, Ind., with combined floor space of more than one million square feet.

FormTech Industries LLC is led by forging industry veteran and former owner of MSP Industries, Dr. Richard McDermott, who will act as chief executive officer. He is joined by Rick Larkin, chief financial officer, also formerly with MSP Industries, and Lance Harris, chief operating officer, former operating executive with MascoTech, the predecessor company of Metaldyne's Forgings Business.

"We are all very excited at having acquired state-of-art production facilities," says McDermott. "The FormTech team is committed to serving the metal forming requirements of the North American market and plans to leverage these world-class manufacturing capabilities with a focus on expanding the technological frontiers of precision cold, warm and hot forming."

Adds Harris, "The strength of our people combined with the unrivaled range of capabilities will prove essential in growing the company as we focus on our core competencies: forging and machined forgings."

While FormTech will supply forgings to Metaldyne under a long-term supply arrangement, it is an independent, privately held company in which neither Metaldyne nor its shareholders will have an ownership stake.

FormTech's website address is http://www.formtech2.com/ .