1 Sep 2004
By Liz White, ERJ staff
Sacramento, California-GenCorp Inc. announced 1 Sept that it has completed the sale of its GDX Automotive business to New York-based investment firm Cerberus Capital Management LP. GenCorp will receive $147 million in cash from the transaction, on a debt-free cash-free basis.
The troubled automotive profiles business has been a loss maker for some time, and Gencorp has been considering options for its future for several months.
"The sale of GDX represents a major step in GenCorp's efforts to focus the company's resources 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, in a company statement.
GenCorp said GDX was a discontinued operation from the second quarter of 2004, and recorded a $261 million one-off charge to reflect the estimated disposal value.
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