Sogefi has sold $115 million in bonds to investors in the United States in a private placement, a source privy with the deal told Bloomberg. The source added that the Italian supplier is also planning to sell another EUR25 million ($32 million) note. Sogefi plans to use the proceeds of the bond sale to finance its expansion in countries with higher development potential as well as to fund its investment in innovation and competitiveness, the source disclosed.
The supplier is currently making an expansion in North America and Asia. Sogefi is constructing two sites in China to offset slumping operations in Europe. Sogefi, which automotive customers include Ford and Fiat, logged a 5.1-percent drop in revenues in the first quarter of 2013 due to slowing sales in Europe, where demand for vehicles is declining for six consecutive years.
Sogefi acquired the French division of US component maker Mark IV LLC in 2011 to expand outside Europe. In April 2013, the supplier appointed former Pirelli executive Guglielmo Fiocchi as chief executive, replacing Emanuele Bosio. Sogefi produces flexible suspension components and systems for managing, filtering and cooling engine fluids.