Carlyle Group aims to sell auto parts supplier Metaldyne for $1 billion

Article by Christian Andrei, on April 19, 2012

A source told Reuters that Carlyle Group LP, a private equity firm, wants to benefit from the firm recovery in auto production volumes and is hoping to sell auto parts supplier Metaldyne for $1 billion. Nearly three years ago, Carlyle filed for Chapter 11 bankruptcy protection as it incurred huge debts amid a dramatic drop in vehicle production volumes in North America.

The possibility of selling Metaldyne is something that would do a lot of good to Carlyle, which led an investment group that acquired Metaldyne assets out of bankruptcy in late 2009. Carlyle has selected Bank of America Merrill Lynch to be its advisor for the potential sale of Metaldyne after meeting with investment banks last February.

It’s predicted that this supplier would have around $150 million to $160 million in earnings before interest, tax, depreciation and amortization (EBITDA) in 2012 and may be sold for about six times EBITDA. Over the past year, several of Carlyle’s automotive assets have been auctioned off. Metaldyne is one of them.

The various hedge funds, distressed investors and private equity firms that got assets during the industry recession hope to be helped by the improving vehicle production in North America. The company produces metal-formed parts and assemblies for powertrain applications such as engine connecting rods, transmission valve bodies and balance shaft modules. It has over 4,000 workers and its annual revenue is estimated to be around $1 billion. Among its customers are General Motors Co., Ford Motor Co., Chrysler Group LLC and BMW AG.

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

When Donkervoort Automobielen BV unveiled its Donkervoort D8 GTO-RS limited edition in May 2016, customer interest has been so overwhelming that the Lelystad, Netherlands-based carmaker sold out this one-of-a-kind vehicle...
by - December 8, 2016
Mazda’s RX-7 and RX-8 rotary sports car are two of the most beloved sports cars from Japan. Aside from their terrific road balance and agility, these sports cars are powered...
by - December 8, 2016
Nearly a decade after Opel and sister brand Vauxhall introduced the Insignia large family car, these companies are now getting ready to unveil the second generation of this offering from...
by - December 7, 2016
After we caught a glimpse of the revamped Amarok, VW Australia once again wants to give its ute a sinister look inspired by the Mad Max movie franchise. The “Korama”...
by - December 7, 2016
Customers in the European market are known for leaning towards style and with this in mind, Nissan has revealed the special LEAF Black Edition. While the production run of this...
by - December 7, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries