Cypress, Goldman in $1.17bn auto buyout(4)

New York private equity firms The Cypress Group and Goldman Sachs Capital Partners today announced an agreement to buy the automotive business of Cooper Tire & Rubber for approximately $1.165 billion (€957 million) in cash.

The division, Cooper-Standard Automotive, is based in Novi, Michigan. In 2003, it had revenue of approximately $1.6 billion. The company makes fluid handling systems, body sealing systems and active and passive vibration control systems.

Cooper-Standard management and employees, led by Jim McElya, will participate in the proposed buyout.

David Spalding, the vice chairman of Cypress Group, and Terry O’Toole, managing director of Goldman Sachs Capital Partners, led the deal for their respective firms.

In July, Cypress Group announced an agreement to acquire the automotive aftermarket group of Dana Corporation in a $1.1 billion deal. The company has been renamed AFFINIA.

The AFFINIA deal is being led by managing director Michael Finley.

The firm had a major exit event earlier this year when it sold movie theater chain Cinemark to Chicago private equity firm Madison Dearborn Partners in a deal valued at $1.5 billion.

Last year, Cypress Group and The Blackstone Group teamed with mortgage insurer PMI and buyout firm CIVC Partners to buy out FGIC, General Electric’s financial guaranty business, for approximately $2.16 billion.