Rochester Hills, Michigan, United States
DURA Automotive Systems, Inc. (Pink Sheets:DRRAQ) announced that it has completed the sale of its North American jack and tool kit business to automotive supplier Autoline Industries Limited (BSE: 532797). The announcement came following approval by the Court to move forward with the transaction. DURA had earlier announced the intent to market the business as part of a corporate restructuring program.
DURA's jack and tool kit business has one U.S. plant located in Butler, Ind., where it employs approximately 140 people. With annual revenues of approximately $25 million, DURA's jack and tool kit business produces automotive bottle jacks, scissor jacks and related products for automotive jack tool kits. The jack and tool kit business' capabilities also include metal stamping, and powder coat paint and assembly.
"The business has contributed nicely to DURA and offers attractive growth prospects," said Larry Denton, chairman and chief executive officer of DURA. "Selling this business will bring DURA closer to achieving the company's restructuring goals."
Customers of DURA's jack and tool kit business include General Motors, Nissan, Ford and Honda, among others.
"This is our second strategic acquisition in the United States this year and now provides us with a manufacturing location that complements our global engineering center in Troy, Michigan, and our existing manufacturing locations in India," said Gopal Patwardhan, chairman of Autoline. "We are excited with the enhanced ability to service our global automotive and non-automotive customers."
On October 30, 2006, DURA Automotive Systems, Inc., and its domestic and Canadian affiliates filed voluntary petitions for protection under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. On August 22, 2007, the company filed its Chapter 11 plan of reorganization and the related disclosure statement. The company expects to exit Chapter 11 during the fourth quarter of 2007. DURA and its domestic and Canadian affiliates continue to operate their businesses as Chapter 11 debtors-in-possession.
About Autoline Industries Ltd.
Autoline's principal activities are manufacturing and designing of auto components, sheet metal components, sub assemblies and assemblies. Autoline manufactures various auto parts, sheet metal components, silencers and exhaust systems for passenger cars, sports utility vehicles, commercial vehicles, two wheelers, three wheelers and tractors. It is one of the prime vendors to various automobile companies such as TATA MOTORS (TELCO), Bajaj Auto, Kinetic, Mahindra & Mahindra and others. Autoline Industries is a public limited company traded on the Bombay stock exchange. More information is available at www.autolineind.com
About DURA Automotive Systems, Inc.
DURA Automotive Systems, Inc., is a leading independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive industry. DURA markets its automotive products to every North American, Asian and European original equipment manufacturer (OEM) and many leading Tier 1 automotive suppliers. DURA is headquartered in Rochester Hills, Mich. Information about DURA and its products is available on the Internet at www.duraauto.com.
Source: Business Wire (Business Wire India)