NEW YORK – Dayco Products LLC, a manufacturer of engine parts for vehicles and industrial equipment, has received offers from bidders including Apollo Global Management LLC and Gores Group, people familiar with the case told Bloomberg.
The Detroit suburban supplier could pick up about $ 1 billion, said the people who asked not to be identified because the case is not public. The company, which is advised by Deutsche Bank AG, may soon close a deal, they said, adding that no decision has been taken and the owners can choose to keep the company.
Dayco, formerly known as Mark IV Industries with roots dating back to 1905, makes and sells drive belts, water pumps, hydraulic hoses and other parts for smooth running engines, according to the website. It sells them directly to original equipment manufacturers and through aftermarket channels.
The company is owned by an investor group comprising Oaktree Capital Group LLC and TPG, according to a research note from Moody & Investors Service in October. It had about $ 1 billion in sales in the 12 months that ended on August 31, Moody's said.
Representatives from Apollo and Deutsche Bank refused to comment. Representatives for Dayco, TPG, Oaktree and Gores Group did not respond to requests for comments. Gores Group is owned by Tom Gores, a well-known name in Detroit because of his ownership of the Detroit Pistons basketball organization of the NBA.
Mark IV filed for bankruptcy in 2009 under the previous owner Sun Capital Partners, because the recession squeezed the suppliers of car parts. Sun Capital had taken over the company a year earlier from BC Partners Ltd., which sold the company at a loss, people who were familiar with the issue at the time.
Dayco & # 39; s current owners tried to sell the company in 2015, but that process stalled when the offers were low, according to the people