Credit Suisse-Backed Hema Says Received Offers for Stakes

  • Company gets 235 million-euro Credit Suisse syndicated loan
  • Parent company Hattat to seek loans for mining, energy

Hema Endustri AS, a Turkish maker of automotive parts, said it’s been approached by investors offering to buy a stake or proposing to set up production joint ventures as deals accelerate in the global auto-parts industry.

The company, owned by closely held Hattat Holding AS, may consider an “attractive offer” for a stake, though it isn’t actively searching for a partner, Chairman Ibrahim Hattat said Tuesday in an interview in Istanbul, after the company had secured a loan arranged by Credit Suisse Group AG.

“All the bidders we are having talks with are international companies, ranging from producers of transmission systems to hydraulics,” Hattat said, without identifying any. “We don’t have an intention to sell a stake, but if we get an attractive, extraordinary offer, we can of course consider it.”

Auto-supplier deal value will rise to a record of $48 billion this year, from $14 billion in 2014, PricewaterhouseCoopers LLP said Aug. 11. Rising U.S. auto sales, led by pickups and sport utility vehicles, are fueling supplier mergers, helped by carmakers’ continued expansion in China and the production rebound in Europe. Suppliers came out of the recession lean and after five years of growth have cash to spend, PwC said.

Hema Endustri approached Ford Otomotiv Sanayi AS, a company co-owned by Ford Motor Co. and Koc Holding AS that makes vans, trucks and other commercial vehicles at its plants in Turkey, to supply it with steering wheel and brake systems for Ford’s new Transit model that will come to market in 2018 or 2019, Hattat said.

Sales Expand

Cerkezkoy, Turkey-based Hema Endustri expects to increase sales by 15 percent this year, to 700 million euros ($794 million) and by another 15 percent in 2016, Hattat said. Exports account for about 70 percent of its total revenue, with international buyers in more than 80 countries. The parent company is in talks with several lenders including Credit Suisse to finance energy-production and coal-mine development projects valued at $4 billion over 15 years, the chairman said.

Hema Endustri, whose major customers include Deere & Co., Caterpillar Inc. and Daimler AG, signed an agreement Tuesday with Credit Suisse for a 235 million-euro five-year syndicated loan. It will be used to improve plant productivity and extend the maturity of existing debt, according to Ugur Bayar, chief executive officer of Credit Suisse’s Turkey unit.

Apart from Zurich-based Credit Suisse, members of the group of lenders are from the Persian Gulf and Asia, Hattat said, without disclosing the terms of the loan. The amount could be increased to 250 million euros, he said.

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