Holiday Special: Subscribe for $1.52/week.

TI Automotive near deal to sell to Bain for $2 billion, report says

NEW YORK  (Bloomberg) -- TI Automotive, the auto fuel-systems company owned by several hedge funds, is nearing a deal to sell itself to Bain Capital Partners LLC for as much as $2 billion, people with knowledge of the matter said.

The two sides resumed negotiations after talks broke down in November because of a disagreement over price and are finalizing loan commitments this week, said one of the people, who asked not to be named because the process is private.

Bain was seeking to line up as much as $1.6 billion in debt for the purchase, people familiar with the situation said last week.

The deal is not signed yet and will have to be agreed upon by all of the company's shareholders, one of the people said.

TI, based in Auburn Hills, Michigan, was bought by a group of funds led by Oaktree Capital Group LLC and Duquesne Capital Management LLC in a 2007 debt restructuring.

It is chartered in Britain.

Frank Buscemi, a spokesman for TI Automotive, declined to comment as did Charlyn Lusk, a spokeswoman for Bain at Stanton Public Relations & Marketing.

TI, which once supplied fuel lines to Ford Motor Co.'s Model T, traces its roots to 1919.

The company generated about $3 billion in revenue last year, with more than one-fourth coming from North America, a spokesman for the company said previously.

It has about $400 million in earnings before interest, taxes, depreciation and amortization, people familiar with the situation have said.

Bain, based in Boston, manages about $70 billion in assets, according to its Web site.

Its investments include Texas-based specialty retailer Michaels Stores Inc. and German auto-parts maker FTE Automotive GmbH.

25

Shares

ATTENTION COMMENTERS: Over the last few months, Automotive News has monitored a significant increase in the number of personal attacks and abusive comments on our site. We encourage our readers to voice their opinions and argue their points. We expect disagreement. We do not expect our readers to turn on each other. We will be aggressively deleting all comments that personally attack another poster, or an article author, even if the comment is otherwise a well-argued observation. If we see repeated behavior, we will ban the commenter. Please help us maintain a civil level of discourse.

Newsletters