GF Signs Agreement to Divest GF Casting Solutions

The divestment of GF Casting Solutions will enable GF to focus on long-term growth and value-generating investments in Flow Solutions for Industry, Infrastructure, and Buildings.

“With this agreement, GF enters the final stage of its transformation into a pure-play Flow Solutions company,” comments GF CEO Andreas Müller. “We are pleased to have signed this agreement with Nemak, a reputable partner who will provide GF Casting Solutions and its employees with a strong base for the future.”

“By combining GF Casting Solutions and Nemak, we are taking a significant step forward as a global provider of lightweighting solutions, enhancing our technological capabilities, expanding our customer base and product portfolio, and strengthening our global footprint”, said Armando Tamez, CEO of Nemak. “We are proud to welcome a highly skilled team that shares our deep commitment to delivering lasting value to our customers.”

Details of the transaction
The transaction encompasses all of the automotive business of GF Casting Solutions, which in 2024 generated annual sales of approximately CHF 622 million. The divestment includes nine production sites across Europe, China, and the US, and involves a workforce of approximately 2’500 employees. The enterprise value amounts to USD 336 million, of which USD 160 million is to be paid at closing. The remaining consideration consists of the assumption of existing operating and financial liabilities, as well as further instalments to be paid within five years following the closing. The residual payments are not subject to any business performance-related conditions.

As a result of the transaction, it is expected that GF will incur sizeable one-off, non-cash book-losses including various adjustments, recycling of goodwill and currency translation differences.

The iron foundry in Leipzig (Germany), along with the aerospace and industrial gas turbine operations located in Novazzano, Stabio (Switzerland) and Arad (Romania), are not part of the transaction. The divestment process for these discontinued operations has been initiated.