Aludyne divests certain North American business assets to Linamar
Client(s) Aludyne, Inc.
Jones Day advised Aludyne, Inc. in a complex, distressed M&A transaction that required coordinated negotiations with the company’s secured lenders, key customers, and other critical stakeholders to secure forbearances and near-term liquidity during the sale process. The Company carried in excess of $300 million in funded indebtedness and was facing acute financial distress driven by a prolonged period of insufficient revenue, escalating operating costs and capital expenditures, and the impact of tariffs, global trade headwinds, and other adverse macroeconomic conditions. Against this backdrop, the Company engaged Jones Day to help structure and execute the sale of Aludyne’s North American operations to affiliates of Linamar Corporation, a Canadian-based diversified manufacturing company, for approximately $300 million. As a strategic acquirer with complementary product lines, manufacturing footprint, and customer overlap, Linamar presented significant operational and commercial synergies that supported continuity of supply, enhanced scale, and long-term competitiveness—making the transaction beneficial for employees, customers, and creditors alike. The transaction included liquidity support and covenant relief to stabilize operations through closing, preserve supplier and customer relationships, and manage counterparty risk across a complex multi-jurisdictional footprint. Proceeds from the sale were applied to effect a critical paydown of secured indebtedness, materially deleveraging the capital structure and providing liquidity runway for the remaining business. Working across restructuring, M&A, finance, tax, employee benefits, and regulatory disciplines, Jones Day helped Aludyne mitigate execution risk, align creditor constituencies, and deliver a value-maximizing outcome under an accelerated timeline, while avoiding a bankruptcy filing, preserving going-concern value, and successfully guiding the company through a period of distress to a strategic business combination that delivered value to all parties.
