Nemak announces agreement to acquire GF Casting Solutions’ automotive business

Nemak announced that it has entered into a definitive agreement to acquire the automotive business of GF Casting Solutions, a Swiss-based leader in lightweight casted components, with production facilities in Romania.

This strategic acquisition will represent a key milestone in Nemak’s efforts to accelerate its transformation beyond ICE powertrain components and broaden its global footprint. The transaction will allow Nemak to further diversify its customer base, enhance its technological capabilities, and strengthen its position in the transition towards sustainable mobility.

GF Casting Solutions automotive business will bring advanced expertise in the design and manufacturing of high-complexity structural components made from aluminum and magnesium– materials central to lightweight vehicle design. It will also add significant capacity and technology in high-pressure die casting (HPDC), as well as expanded commercial reach, particularly across premium European and Chinese OEMs.

“For over four decades, Nemak has been at the forefront of lightweighting solutions, supporting the world’s leading automakers in their pursuit of innovation and sustainability. The integration of GF Casting Solutions automotive business will mark a new chapter in our journey—one that expands our global reach and long-term perspective”, said Álvaro Fernández, Chairman of Nemak’s Board of Directors.

“GF Casting Solutions automotive business will significantly enhance Nemak’s technological capabilities and enable the offering of more comprehensive solutions in high-growth, non-ICE components—particularly in structural, chassis, and EV applications. Its strong reputation for excellence and reliability aligns with Nemak’s values and long-term vision, reinforcing our commitment to innovation and delivering value to our customers,” added Armando Tamez, CEO of Nemak.

GF Casting Solutions is a division of the Swiss industrial company Georg Fischer (GF). The transaction includes the entirety of GF Casting Solutions’ automotive business, headquartered in Switzerland with approximately US$707 million annual revenue, and adjusted EBITDA of US$91 million in 2024. This transaction includes an R&D center located in Switzerland and nine production facilities strategically located in Austria, China, Romania, Germany, and the United States, welcoming approximately 2,500 employees.

The product portfolio comprises highly complex aluminum and magnesium components: ~80% in e-mobility and structure & chassis, and ~20% in other components. The customer base includes western OEMs, such as Audi, BMW, Jaguar-Land Rover, Mercedes Benz, Porsche, Stellantis, Volkswagen, and Volvo; as well as Chinese OEMs including BYD, Denza, Geely, Hongqi, Li Auto, Nio, Xpeng, and Zeekr.

The transaction implies an enterprise value of US$336 million. An initial disbursement of US$160 million will be paid at closing, financed through long-term credit facilities. The remaining consideration includes the assumption of existing operating and financial liabilities, and additional deferred components, such as vendor financing and contingency-based holdbacks to be released over a five-year period. On a proforma basis, Nemak’s net debt-to-EBITDA ratio is expected to be in a range of 2.5-2.6x by the end of 2025.

The acquisition is expected to close in the second half of 2025, subject to customary regulatory approvals and other standard conditions.