Cooper-Standard is no longer for sale due to market uncertainty

Article by Christian Andrei, on October 25, 2011

Due to current market conditions, Cooper-Standard Holdings Inc. is no longer for sale. Earlier this month, Reuters had reported that three private-equity firms (Carlyle Group, Cerberus Capital Management and Platinum Equity) wanted to buy Cooper-Standard. However, the supplier's board has put a stop to the assessment process for a sale. According to Richard Hilgert, an analyst for Morningstar Inc., the likely culprit for the deal falling apart is the market uncertainty over Europe’s debt crisis. He said that Cooper-Standard probably wasn’t able to get the price it wants, negating any reason to sell.

It was in May 2010 that Cooper-Standard emerged from Chapter 11 bankruptcy in the hands of hedge funds like Silver Point Capital and Oak Hills Advisors. After reducing the debt by $650 million, these companies now want to cash in on their investment. In the first six months of 2011, the supplier had sales of $1.45 billion and generated a net profit of $64 million.

The interest of Carlyle Group and other private-equity firms is centered on supplier deals, such as a possible $1.5 billion acquisition of TI Automotive Ltd. Hilgert said that the deals are being delayed due to the condition of the market. The crisis has also affected initial public offerings in the auto industry.

Last year, Delphi Automotive LLP announced an IPO but this was postponed until 2012. Cooper-Standard offers a range of sealing, thermal management, fuel, braking, and emissions systems for automakers. [source: Autonews]

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