Park-Ohio Holdings sells off its aluminium products business unit

Park-Ohio Holdings Corp., an international company providing strategic services and products that allow the world’s leading manufacturers to streamline their manufacturing processes, announced on January 3 that it completed the sale of its aluminium products business, effective December 29, 2023.

As per the report, Park-Ohio sold the business unit for approximately $50 million in cash and promissory notes. In addition, it expects nearly $3 million of finance lease obligations by the buyer.

Park-Ohio will get a cash down payment of $20 million, cash of $15.5 million, and promissory notes totalling $15 million, of which $10 million is dependent on attaining certain revenue milestones during 2024. All this money will be utilised in repaying a portion of the company’s outstanding indebtedness.

Matthew V. Crawford, Chairman, Chief Executive Officer and President, said, “The sale of our Aluminum Products business enables us to achieve the dual goals of deleveraging our balance sheet and reducing the capital intensity of our broader business. Additionally, it provides us with greater flexibility to focus on our core businesses which have seen record sales and backlogs. We want to thank all our partners in building General Aluminum into an industry leading enterprise.”

Park-Ohio will report the fiscal earnings of the divested business as a discontinued operation while it posts results for the fourth quarter and full year 2023.

Park-Ohio is headquartered in Cleveland, Ohio. It operates over 130 manufacturing sites and supply chain logistic facilities worldwide through three business segments: supply technologies, assembly components, and engineered products. The company is a leader in manufacturing highly engineered components in aluminium castings and machining, fluid routing, injection molded rubber, thermoplastic products, and many more. The engineered products account for approximately $443 million in sales.