ROMULUS, MICH. — Automotive supplier Hayes Lemmerz International Inc. will acquire CMI International Inc., a maker of plastic air-intake modules and metal brake and suspension components.
Hayes will pay $605 million to buy CMI, based in Southfield, Mich. The price included $437 million in cash and the rest in debt.
The sale, announced Nov. 20, gives Romulus-based Hayes a major footing in aluminum technology, said equity analyst Richard Hilgert of Detroit-based Fahnestock & Co.
Hayes, which makes wheel and brake parts, also plans to use CMI's products to create wheel systems, called corner modules.
The future of CMI's plastic manifold business is a question, Hilgert said. The business does not fit well into Hayes' portfolio. The manifolds, made from nylon, are produced through the lost-core molding process at CMI's plants in Petersburg, Mich., and Nuevo Laredo, Mexico.
The company has said it expects to make about 3 million manifolds by the 1999 model year.
Hayes spokesman Dennis Richardville said his company plams to evaluate CMI's manifold business before deciding how it fits with the company's future.