Nemak Returns to BMV With MX$8 Billion Bond Offering

Automotive component manufacturer Nemak is returning to the Mexican Stock Exchange (BMV) to raise up to MX$8 billion (US$461.73 million) through a dual bond issuance, according to the company's placement prospectus. The transaction is scheduled for July 10 as part of a broader debt program of up to MX$10 billion (US$577.17 million). While the company intends to tap the local debt market to secure fresh capital, the preliminary filing does not specify how the proceeds will be used.

BBVA, Scotiabank, Santander, and Monex will serve as placement agents for the offering, with Monex also acting as the common representative. Although the prospectus does not disclose the intended allocation of the funds, the bond issuance follows a significant improvement in the Monterrey-based manufacturer's financial performance.

During the first quarter of 2026, Nemak reported a 15.3% increase in revenue to US$1.398 billion. The company also posted a net profit of US$20.5 million, reversing a net loss of US$16.9 million recorded during the same period a year earlier.

Hervé Paul, Nemak's newly appointed CEO, told analysts that the company's revenue momentum was driven primarily by its European operations. He added that Nemak remains focused on a commercial pipeline representing approximately US$1.9 billion in annual revenue, which offers "potential opportunities in key segments" across global automotive markets.

GF Casting Solutions Acquisition

The company's financial recovery coincides with its acquisition of the automotive business of Swiss industrial group Georg Fischer, known as GF Casting Solutions. The US$336 million transaction, completed on a cash-free, debt-free basis, closed on Feb. 1 after receiving the required regulatory approvals and satisfying customary closing conditions. According to the company, the deal was aimed at repositioning Nemak's manufacturing footprint toward sustainable mobility technologies.

Nemak financed an initial payment of US$216 million using available cash, including US$113 million in cash and cash equivalents acquired as part of the transaction, as well as working capital adjustments. The remaining balance will be paid over five years through a seller-financing arrangement tied to performance-related conditions.

The acquired business generated US$707 million in revenue during 2024. The transaction adds approximately 2,500 employees, one research and development center in Switzerland, and nine manufacturing facilities across Germany, Austria, China, the United States, and Romania. Nearly 80% of the acquired portfolio is dedicated to electromobility, structural systems, and chassis components, significantly expanding Nemak's capabilities beyond traditional internal combustion engine parts.

Nemak Chairman Álvaro Fernández described the acquisition as a strategic milestone that opens new avenues for growth and value creation. Former CEO Armando Tamez Martínez added that the transaction aligns the company with long-term trends shaping the global automotive industry. "The integration will bring together complementary strengths and accelerate the company's transition toward cleaner and smarter mobility," Tamez Martínez said.

The acquisition also broadens Nemak's customer base to include global automakers such as Audi, BMW, Mercedes-Benz, Porsche, and Volkswagen, as well as leading Chinese electric vehicle manufacturers including BYD, Geely, Nio, and Xpeng.