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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