DETROIT -- Dura Automotive Systems Inc. has agreed to be acquired by private New York equity fund Patriarch Partners, whose CEO, Lynn Tilton, has built an empire by acquiring distressed companies.
The deal has been signed but is awaiting regulatory approval, a source familiar with the deal told Automotive News.
Dura CEO Tim Leuliette and his management team will remain, the source said.
Tilton has agreed to a $125 million investment that is expected to give Patriarch a controlling stake in Dura in a deal to be closed by year's end.
The assets of Global Automotive Systems, a grouping of small auto parts suppliers already owned by Patriarch, will be merged into the new Dura.
The combined sales of Dura and GAS will total nearly $2 billion, the source said.
Dura had worldwide parts sales to automakers of $1.75 billion in 2008. It ranks No. 90 on the Automotive News list of the top 100 global suppliers.