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Delphi names Hephaestus subsidiary high bidder for wheel bearings business, sale hearing March 19
By Caroline Salls
Pittsburgh, Feb. 21 - Delphi Corp. said Hephaestus Holdings, Inc. wholly owned subsidiary Kyklos, Inc. was the successful bidder at the auction for Delphi's wheel bearings business, according to a Delphi news release.
The sale is subject to customary closing conditions, including approval by the U.S. Bankruptcy Court for the Southern District of New York.
A sale hearing is scheduled for March 19, and the sale is expected to close by April 30.
According to a Hephaestus news release, Kyklos is acquiring substantially all of the bearings business's inventory, intellectual property and machinery and equipment, including a manufacturing and engineering facility located in Sandusky, Ohio.
Kyklos will offer employment to all of the bearings business's employees and is expecting to assume all of the customer and supplier contracts, the Hephaestus news release said.
"There is compelling industrial logic driving this acquisition," Hephaestus chief executive officer George Thanopoulos said in the release.
"As a result of the acquisition, HHI will quickly become an integrated supplier of wheel bearings, similar to substantially all of the participants in the global wheel bearings industry.
"We look forward to working with the UAW to create a long term sustainable business in Sandusky with a competitive cost structure and the finest quality in the industry."
As previously reported, Resilience Capital Partners, a subsidiary of ND Acquisitions Corp., was the stalking horse bidder for the bearings business with a $44.2 million offer.
Since it was not the high bidder, Delphi will pay Resilience Capital a $1.5 million break-up fee and reimburse its out-of-pocket sale-related expenses.
Delphi, a Troy, Mich.-based automotive electronics manufacturer, filed for bankruptcy on Oct. 8, 2005 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 05-44481.
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