Global private equity and venture capital news and research

American Securities, Apollo line up for Metaldyne sale

24 Aug 2012

American Securities and Apollo Global Management are reported to have submitted offers for Metaldyne, the US auto parts supplier that Carlyle bought out of bankruptcy three years ago.

The firms are understood to be competing against Limanar, Canada’s second-largest auto supplier, in a deal that could fetch between $800m and $900m Reuters reported, citing unnamed sources.

Carlyle Group LP has hired Bank of America Merrill Lynch to find a buyer for the company.

Metaldyne, which is based in Plymouth, Michigan, is forecast to generate about $150m to $160m in EBITDA this year, the report said.

Carlyle had hoped for a six-times EBITDA multiple, equivalent to about $1bn, although bidders are said to have valued the company at about five-times earnings, the report added.

Metaldyne today has about $1bn in annual revenue and over 4,000 employees, with a customer base that includes General Motors, Ford, Chrysler and BMW.

Carlyle and Solus bought the business for about $440m in August 2009 through a joint venture called MD Investors, which outbid Belgian investment house RHJ International.

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