GF has signed an agreement to divest GF Casting Solutions’ automotive business to Nemak SAB de CV, a Mexico based global leader in aluminium lightweighting solutions for the automotive industry. Closing is expected to take place in the second half of 2025, subject to regulatory approvals.
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,” said 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 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 US$336 million, of which US$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.
Nemak is a leading provider of innovative lightweighting solutions for the global automotive industry, specialising in the development and manufacturing of aluminium components for e-mobility, structure and chassis, and ICE powertrain applications. In 2024, the company generated sales of approximately US$4.9 billion and employed around 23,000 people worldwide. Nemak shares are listed on the Mexican Stock Exchange and are part of the Dow Jones Sustainability Indices. www.nemak.com
In addition to this, GF has completed all remaining closing conditions for the divestment of GF Machining Solutions to United Grinding Group. To transparently incorporate the effect of the deconsolidation of GF Machining Solutions, the publication of GF’s Mid Year 2025 Report was rescheduled to 24th July 2025.
The company says the successful closing of the divestment of GF Machining Solutions to United Grinding Group, Bern (Switzerland), marks an important milestone in GF’s transformation journey to become the global leader in flow solutions.
Andreas Müller said: “I would like to sincerely thank all employees of GF Machining Solutions for their contributions over the years. We wish them all the best as they embark on this new chapter.” www.georgfischer.com