April 24, 2007 — Marathon Asset Management L.L.C. and its Marathon Automotive Group have completed the acquisition of Contech from SPX Corp., a purchase announced early in March. Marathon Asset Management, a $9.5-billion investment group, provided the financing, and calls this "the most meaningful acquisition to date" for the Automotive Group it formed in order to invest in automotive and truck industry suppliers.
The purchase price was reported originally at $146 million.
SPX Corp., Charlotte, produces valves, condensers, and other products in the areas of flow technology, test and measurement, and thermal equipment and services. It concluded that serving the automotive supply chain did not fit with its long-term strategy.
Contech is a nonferrous diecaster and machining company. It also develops "proprietary and innovative metal-forming process technologies," which allows it to offer advanced solutions to automotive industry customers. Contech also produces forged steel automotive components, and has started to promote its steel tube fabricating capabilities to develop niche applications in the heavy- and medium-duty truck segments.
Marathon Automotive Group is led by Morris C. Rowlett, chairman and CEO; Robert E. Eckert, executive vice president of Finance; and Mark R. Krupp, executive vice president of Operations. The group's senior executive team will partner with Contech's management team, led by president Mark Hunter, will remain in place.