Sacramento, Calif.,-based GenCorp Inc. will sell its GDX Automotive business to Cerberus Capital Management L.P., a New York investment firm, for $147 million in cash, the company said Monday. The sale is expected to close Nov. 30, pending government approval.
GenCorp said it will use the money from the transaction to invest in aerospace, defense and real estate operations. The company recorded a one-time charge for GDX, reclassified as a discontinued operation, at $261 million in its second quarter. The unit makes up about two-thirds of GenCorp.'s overall value.
GDX Automotive is 102 on the Automotive News ranking of top suppliers to North American automakers in 2003 with $393 million in sales.
The unit has struggled recently, recording lower sales amid declining volumes and increased pricing concessions to large customers.