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

Article by Christian A., 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]

If you liked the article, share on:

Comments

Recommended

Not so long ago, the 2018 Genesis G80 Sport made its debut at the 2016 LA Auto Show. But at that time, it did not have a price yet. And...
by - April 23, 2017
It seems like an increase in price has become a trend for automotive companies lately. Genesis isn’t alone when it comes to this. Subaru had just announced that the 2018...
by - April 23, 2017
Imagine a sports car morphing into an SUV. Chevrolet initially revealed the FNR Concept at the previous Shanghai Auto Show in 2015. For this year, Chevy once again graces the...
by - April 22, 2017
From the moment FCA kicked off with its 3-month-long ad campaign until the day it unveiled the new Dodge Challenger SRT Demon, folks have been guessing what the exact figures...
by - April 22, 2017
Some people may think Audi Sport is a new company but it is in fact the motorsport division of Audi combined with the best of what Quattro GmbH can offer....
by - April 21, 2017
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