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Bain Capital LLC is in discussion for the acquisition of TI Automotive

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November 12
10:53 PM 2013

Advanced discussions are being undertaken between Bain Capital LLC and auto parts supplier TI Automotive Ltd. The said discussions revolve around Bain acquiring TI Automotive for a sum worth nearly USD2 billion. This was confirmed last Tuesday by people familiar with the transaction.

This is the second time the buyout firm is attempting to purchase TI Automotive in the last couple of years. Back in 2011, Bain was one of the three private equity firms that had forwarded bids for TI Automotive. TI Automotive manufactures fuel tanks as well as brake and powertrain components for both cars and trucks. According to a Reuters report at the time, the sale process was halted amidst deteriorating financing conditions present during that period.

The other buyout firms that had submitted bids in 2011 were Carlyle Group LP and Pamplona Capital Management LLP.

TI Automotive was acquired through a 2007 debt restructuring scheme by a consortium of funds led by Oaktree Capital Group LLC and Duquesne Capital Management LLC. The company was then put up for sale in this summer. 

The sources said that there is no guarantee that a deal would be forged this time around between Bain Capital and TI Automotive. These individuals requested anonymity as the matter remains to be private in nature.

TI Automotive had sought out other private equity firms and companies in its sector for interest in acquiring the company as a whole. The people could not confirm if Bain was the only party interested and in discussion with TI Automotive.

Both Bain Capital and Oaktree Capital declined to provide a comment on the matter while a TI Automotive representative did not respond to a request for comment.

Based out of Auburn Hills, MI, TI Automotive is chartered in Britain and has a current earnings before interest, taxes, depreciation and amortization of nearly USD400 million. This was confirmed by one of the sources, who also confirmed that two years ago, the firm's EBITDA was at USD250 million.

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