Ontario-based auto parts maker Wescast Industries Inc. has publicly announced that it is reviewing all "strategic alternatives." In other words, it's looking for potential buyers.
With a market capitalization around $40-million, the company isn't massive, but Wescast's reasoning makes the announcement interesting. Jim Barton, who is chairing the company's special committee, said that the company is looking around because of the recent recovery in the auto sector, demonstrated by things like General Motors' successful IPO.
It also helps that the company turned a $17-million profit last year, whereas it lost $22-million in 2009. The company's fourth quarter results came out just two days ago, and it's more than coincidental that the review was announced just two days after they demonstrated a rebound.
For the moment, the company says it hasn't set a timeline. Canaccord Genuity was hired as the financial adviser.
Tim Kiladze