Parts Vendors’ Shares Gain in Wake of Cooper Tire Deal
Shares in auto-parts suppliers got a boost Friday from a billion-dollar deal in which two private-equity firms are carving off the parts business of Cooper Tire & Rubber Co. Cypress Group and Goldman Sachs Capital Partners have agreed to buy Cooper-Standard Automotive, a unit of Findlay, Ohio-based Cooper Tire, for $1.165 billion. Goldman Sachs Capital Partners is a private-equity investment arm of Goldman Sachs Group.
From the Inside: Executive Interview with Craig Anderson, President, Hercules Tire & Rubber Co.
Our latest edition of “Executive Interview” features Craig Anderson, president of Hercules Tire & Rubber Co. While Hercules has grown quietly, preferring to remain out of the spotlight, every year brings line expansions, new products and other enhancements designed to help its members and dealer customers grow their businesses. Even after selling off its core retreading business, Hercules posted its best sales year ever in 2002, and again in 2003, and saw each of its divisions turn a profit in 2003. Craig Anderson, president, sat for an interview with Jim Smith, editor of Tire Review magazine in April. The two discussed how the changes impacted Hercules, the company’s plans in the future, and how he sees the market moving in the near-term.
Venture Owner Winget Resigns from Board
Macomb County businessman Larry Winget, cofounder and majority owner of bankrupt auto supplier Venture Corp., has resigned from the board amid a lawsuit that alleges he and his family siphoned millions of dollars from the company. Winget’s son and son-in-law, executives with the struggling auto-plastics firm, have been placed on paid leaves of absence.
Reliable Automotive Completes Acquisition of Add-On Distributing
Reliable Automotive, a Kansas-based wholesale specialty equipment distributor, has completed its purchase of privately-held Add-On Distributing, Inc., a specialty automotive wholesale distributor headquartered in South Burlington, Vermont. Terms of the acquisition were not disclosed.
Metaldyne Launches Internal Inquiry
Auto supplier Metaldyne Corp. has launched an internal investigation into questionable accounting practices for the last seven years that could have resulted in overstating the company’s earnings by $20 million. The error was followed by a cover-up to balance the books, the company said.
Bankrupt Venture Might Sell Some Assets
Bankrupt auto supplier Venture Corp. plans to put itself up for sale to see if there is any interest in the Fraser firm’s assets or business contracts, say lawyers and others familiar with the struggling company. Venture, which makes plastic parts such as instrument panels for the auto industry, has asked the U.S. Bankruptcy Court in Detroit for permission to market the company. A hearing to get approval and determine how marketing would be handled is scheduled for March 11.
Earl Scheib Adds Two Board Directors
The board of directors for Earl Scheib Inc. has appointed James Burra and Salvatore Zizza as members. The board also accepted the resignation of Gregory Helm from the board. Helm resigned to pursue other interests. Earl Scheib is a nationwide operator of 115 auto paint and body shops throughout the U.S.