Carlyle sells once-bankrupt U.S. auto parts supplier

Wed Dec 19, 2012 1:50am EST
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* Sale is for $820 million plus related expenses

* Follows divestment of Diversified Machine last year

* American Securities bought HHI Group Holdings in October

By Greg Roumeliotis

Dec 19 (Reuters) - Private equity firm Carlyle Group LP completed on Wednesday the sale of Metaldyne LLC for about $820 million to another buyout firm, its second divestment of a U.S. auto part supplier it picked up from bankruptcy in as many years.

Reuters reported in September that American Securities LLC was in the lead to buy Plymouth, Michigan-based Metaldyne for over $800 million from Carlyle. The two private equity firms announced the completion of the deal on Wednesday.

The sale of Metaldyne, three years after it filed for Chapter 11 bankruptcy protection, was agreed for $820 million plus related expenses, of which $296.5 million would be paid by American Securities as equity, Moody's Investors Service Inc said on Nov. 16.

Metaldyne makes metal-formed components and assemblies for powertrain applications, including engine connecting rods, transmission valve bodies and balance shaft modules.

High debt and a severe slump in vehicle production volumes in North America forced it into bankruptcy, but the company made an impressive comeback after it was taken over by Carlyle, which said on Wednesday it had exceeded its investment goals.   Continued...