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

What has BMW been up to lately? The company recently announced that they are currently focusing on electrification, and so far, their new architecture will enable “electrification of every model...
by - July 26, 2017
A couple of days ago, Ford came out with their pursuit-rated F-150 Police Responder, and we were quite impressed with what it has to offer. And we are pretty sure...
by - July 26, 2017
Aside from fronting Honda’s annual summer tour, pop rock band OneRepublic was also given an opportunity to customize a 2017 Honda Civic Type R. The car is a one-off and...
by - July 26, 2017
Everyone seems to know that the Alfa Romeo Giulia has been recently experiencing problems. Turns out, the blame goes to Giulia’s software. Reid Bigland, big time executive from Alfa Romeo...
by - July 26, 2017
Romanian automotive media publication cars.ro earlier said that the new Ford Fiesta will no longer be offered in the United States. Robert Stiller, Ford’s vehicle program manager for the B-segment,...
by - July 26, 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