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Topics Mergers & Acquisitions Automotive Pipe/Profile/Tubing
Companies & Associations
NOVI, MICH. (Oct. 24, 3:15 p.m. ET) — Cooper-Standard Holdings Inc. announced today that it’s no longer for sale.
Reuters reported this month that three private-equity firms — The Carlyle Group, Cerberus Capital Management and Platinum Equity — were interested in buying Cooper-Standard. However, the board of directors of the Novi-based automotive supplier discontinued the evaluation process for a potential sale because of current market conditions, the company said in a statement.
Richard Hilgert, an automotive equity analyst for Chicago-based Morningstar Inc., said market uncertainty over the debt crisis in Europe probably killed the deal.
“They couldn’t get the price they wanted and if you’re not going to get the kind of returns you’re looking for, there’s no reason to sell,” he said.
Cooper-Standard exited Chapter 11 bankruptcy in May 2010 in the hands of several hedge funds, including Silver Point Capital and Oak Hills Advisors. After cutting $650 million in debt, those firms now look to cash in on that investment.
The supplier generated net profit of $64 million during the first six months of 2011 on sales of $1.45 billion.
Carlyle Group and other private-equity firms are interested in deals, including a potential $1.5 billion acquisition of Auburn Hills, Mich.-based TI Automotive Ltd. But the market continues to delay completion of these deals, Hilgert said.
Initial public offerings in the auto industry also have been affected. Troy-based Delphi Automotive LLP announced an IPO last year, but that has been delayed until 2012.
“We’re going to see more of this activity come back to the market in 2012,” Hilgert said. “We’re still waiting for the dust to settle.”