SACRAMENTO, Calif. (Sept. 1)—GenCorp Inc. has completed the sale of its GDX Automotive business to Cerberus Capital Management L.P., a New York-based investment firm, for $147 million in cash.
"The sale of GDX represents a major step in GenCorp's efforts to focus the company's resources in our Aerospace and Defense and Real Estate operations, where we believe we can achieve higher returns and growth," said Terry Hall, chairman, president and CEO of GenCorp.
Cerberus did not issue any statements regarding the sale or its plans for the unit, which supplies elastomeric sealing systems to auto makers, principally in North America and Europe.
GenCorp classified GDX as a discontinued operation as of the second quarter of 2004, recording a one-time charge in that period of $261 million to reflect the estimated disposition value. As a result, GDX reported an operating loss of $286 million for the six months ended May 31. Sales during that period were down 4.2 percent to $388 million.