DETROIT -- Platinum Equity, the California-based private equity firm run by Detroit Pistons owner Tom Gores, has acquired aluminum and iron castings supplier Diversified Machine Inc., unnamed sources told Crain's Detroit Business.
Financial terms of the deal were not disclosed, according to Crain's, an affiliate of Automotive News.
Reports surfaced in August that its previous private equity owner The Carlyle Group was looking to unload Diversified Machine, looking to fetch more than $400 million.
New York-based Carlyle Group formed Diversified Machine in 2005 by acquiring all of the assets of Howell, Mich.-based supplier UniBoring out of bankruptcy and adding assets from then-bankrupt Metaldyne and Hayes-Lemmerz.
Diversified Machine generated $450 million in revenue in 2010 and $335 million in 2009.
Dan Whelan, vice president at Platinum Equity, declined to comment.
Diversified Machine did not return several phone calls and emails.
For Platinum, the acquisition is one of many recent transportation and automotive acquisitions.
Platinum bought a majority ownership of the Belleville-based logistics company Active Aero Group Inc. earlier this year from a consortium of sellers that includes Berkshire Partners LLC and Greenbriar Equity Group LLC.
Gores also owns Acument Global Technologies Inc., a metal-fastener manufacturer in Michigan that Platinum bought in 2006 for $630 million from Textron Inc.
In January 2010, he picked up recreational-powerboat manufacturer Four Winns LLC as part of a $70 million deal for the assets of bankrupt, Minneapolis-based Genmar Holdings Inc.
He bought AEES Inc., a suburban Detroit vehicle wire harness and electronic distribution systems manufacturer, for an undisclosed sum in 2009 from Alcoa Inc.
Also in 2009, he was unsuccessful in a bid to buy auto supplier Delphi Holdings LLC for $3.6 billion.
Platinum is also reportedly competing to acquire supplier Cooper-Standard Automotive Inc.