TROY, MI — Delphi has entered into a purchase agreement with Kyklos, Inc., a wholly-owned subsidiary of Hephaestus Holdings, Inc., for the sale of its bearings business. The agreement follows Kyklos being declared the successful bidder in an auction conducted as part of a sale process related to Delphi’s Chapter 11 proceedings.
Hephaestus Holdings is an independent manufacturer of forged parts for the North American automotive industry. Its subsidiary, Kyklos, will acquire substantially all of the non-cash assets primarily used in Delphi’s North American Bearings Business, including inventory, intellectual property and machinery and equipment, including a manufacturing and engineering facility located in Sandusky, Ohio. Kyklos will offer employment to all of the bearings business’s employees and is expecting to assume all of the customer and supplier contracts.
The sale of the bearings business is subject to certain customary closing conditions, including approval by the U.S. Bankruptcy Court for the Southern District of New York at a hearing on March 19. The closing of this transaction is targeted to occur on or before April 30, 2008.