GDX International Holdings Ltd., the former vehicle sealing products arm of GenCorp Inc. that Cerberus Capital Management L.P. acquired three years ago, is changing hands again.
MAPS Holdings Inc., the Madison Heights-based vehicle sealing product manufacturer and affiliate of private equity firm Wynnchurch Capital, announced Oct. 19 it is purchasing GDX for an undisclosed amount.
However, six GDX factories, including three in North America, aren't part of the deal and will close.
GDX and Chicago-based Wynnchurch expect to complete the sale by the end of November, according to spokeswomen for both firms.
The purchase is in line with Wynnchurch's goal of becoming a global automotive supplier.
In September, MAPS announced its acquisition of Metzeler Automotive Profile Systems-North America, and Wynnchurch said it planned to use that purchase as a platform for its expansion goals in the auto parts industry.
Cerberus, meanwhile, said earlier this year that it planned to minimize its holdings in the auto parts industry, though it is expanding its holdings in automobiles.
Cerberus recently paid $7.4 billion to acquire 80-percent ownership of automotive giant Chrysler from Germany's Daimler A.G.
The company paid $147 million in cash for GDX Automotive in September 2004.
Both GDX and MAPS executives expressed enthusiasm for the acquisition in a joint press release.
``We are excited about working with Metzeler's North American management team as we focus on delivering quality service and highly engineered sealing systems to our customers,'' said Timothy Nelson, GDX chief operating officer.
``Combining GDX with MAPS Holdings represents an attractive opportunity to dramatically grow our business,'' said MAPS CEO Rob DePierre.
MAPS will acquire GDX's headquarters in Farmington Hills, Mich., as well as facilities in Welland, Ontario; New Haven, Mo.; Guadalajara, Mexico; Grefrath and Rehburg, Germany; and the Czech Republic.
A Chinese joint venture also is included in the purchase.
The six GDX facilities not included in the deal and earmarked for closing before the sale is completed are in Wabash, Ind.; Magog, Quebec; Batesville, Ark.; Palau, Spain; and Corvol and St. Nicolas, France.
GDX customers determined which plants should remain open after the acquisition, the Wynnchurch spokeswoman said.
The GDX spokeswoman had no figures on how many workers will lose their jobs or how many would remain after the acquisition. She said about 700 are employed at Wabash and 400 each at the Batesville and Magog sites.
Gary Bone and Don Watkins, president and vice president of United Steelworkers Local 626L in Wabash, were in meetings with GDX management at press time and could not be reached for comment.
There has as yet been no decision as to whether GDX's entire current management team will remain with the company after the acquisition, the Wynnchurch spokeswoman said.