Dura to receive $125 million investment from Patriarch Partners

By Caroline Salls

Pittsburgh, Dec. 11 - Dura Automotive Systems, Inc. has entered into a recapitalization agreement under which affiliates of Patriarch Partners, LLC will acquire a majority interest in Dura, according to a news release.

Under the agreement, Patriarch will invest up to $125 million of capital and will take a controlling stake in Dura.

According to the release, this transaction completes the transformation of Dura, a company that emerged from Chapter 11 bankruptcy in June 2008, into an automotive supplier with a strong balance sheet, industry-leading intellectual property and a broad low-cost global presence.

The transaction is subject to customary closing conditions, including German regulatory approval.

In addition, Patriarch intends to pursue an integration of Global Automotive Systems, another Patriarch-affiliated company, with Dura.

Global Automotive's expertise would provide Dura with a North American-based manufacturing footprint for expanding its structure and safety systems product lines, which include door structures, parking brakes and other components, the release said.

The combined companies would operate under the Dura brand name.

"Patriarch is committed to the preservation of jobs and the strengthening of industry through the confluence of manufacturing and technology," Patriarch chief executive officer Lynn Tilton said in the release. "This investment exemplifies that strategy."

"The strategic investment in Dura and subsequent integration with Global Automotive Systems significantly enhances Dura's capabilities in North America and creates a robust global supplier with the depth and breadth that will offer rich benefits to Dura's customers and other stakeholders."

Dura is a Rochester Hills, Mich.-based automotive parts maker.

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