By Liz White, ERJ staff
Sacramento, California-GenCorp Inc. is selling its automotive profiles unit, GDX Automotive, for $174 million to a venture capital group.
Following a 7 July statement about a potential sale for the loss-making profiles business, Gencorp announced 19 July that it had signed a definitive agreement to sell GDX to New York based investment firm Cerberus Capital Management LP.
GenCorp will receive $147 million in cash for GDX. The sale, which is subject to regulatory approvals and other customary closing conditions, is expected to close before the end of November.
GenCorp said last week that it had classified GDX as a discontinued operation from the second quarter of 2004, and recorded a one-time charge of $261 million to reflect the estimated disposal value.
"The sale of GDX represents a major step in our effort to transform GenCorp into a more focused entity. This transaction allows us to make available additional assets for investment in our Aerospace and Defense and Real Estate operations, where we believe we can achieve higher returns and growth," said Terry Hall, chairman of the board, president and chief executive officer of GenCorp.
"Both GenCorp and Cerberus are dedicated to achieving a seamless transition. Our customers will see no difference in the strong commitment of GDX's employees to the quality and customer service that they have come to expect."