Resilience Capital Partners, a Midwestern turnaround shop, has agreed to buy a Delphi subsidiary for $44.2 million (€30.2 million), as the auto supplier’s bankruptcy proceedings continue. The final sale of Delphi’s wheel bearings business is expected to close in the first quarter of 2008.
Delphi said the sale agreement includes its Sandusky, Ohio, production and engineering plant, machinery and equipment, intellectual property, contracts and inventory as well as the transition of the plant’s employees. The sale is contingent on a competitive bidding process to be overseen by the US Bankruptcy Court in New York.
Delphi spun out from GM in 1999, and filed for bankruptcy in October 2005. In 2006 the company said it would sell or wind down its non-core businesses, among them its wheel bearings division.
Several other private equity firms have been involved in Delphi’s bailout. In December 2007 Tom Gores’ firm Platinum Equity agreed to pay $190 million for Delphi’s steering and half-shaft operations.
Earlier last year Delphi agreed to accept $3.4 billion in financing from an investment group that includes Cerberus Capital Management, Appaloosa Management, Harbinger Capital Partners, Merrill Lynch and UBS Securities. The deal involved the purchase of $1.2 billion in convertible preferred shares and $200 million in common stock. An additional $2 billion was set aside to buy any common stock left unsubscribed as part of a planned rights offering.
Resilience is a distressed- and turnaround-focussed private equity firm with offices in Cleveland, Ohio and Detroit Michigan. The firm’s recent deals include the buyout of truck parts maker Lund International in partnership with Linsalata Capital Partners in December, and the acquisition of truck bedliner manufacturer Penda Corporation in August, both for undisclosed amounts.