FormTech Industries LLC, a supplier of forged-metal auto components, filed for bankruptcy protection and agreed to sell its assets to Hephaestus Holdings Inc. (HHI), the parent company of several rival forgers. The proposed deal is expected to close within 45 days, subject to bankruptcy court approval. FormTech produces crankshafts and other drivetrain components for light-vehicle and heavy-truck markets at forging operations in Royal Oak, Mich., and Tonawanda, N.Y, employing approximately 400 people. In its Chapter 11 filing, FormTech listed assets in the range of $100-500 million and debt in the range of $50-100 million.
HHI is a holding company owned by KPS Capital Partners LP and MC Capital Inc., a subsidiary of Mitsubishi Corp. Its forging operations include Jernberg Holdings Inc., Impact Forge Group and Kyklos Bearing International Inc. HHI’s eight current operations produce forged parts and wheel bearing for North American automakers.
FormTech Files for Bankruptcy, Agrees to Sell Assets
September 8, 2009