Cerberus: Sale’s of Wabash plant is official, but not final

By SHEILA RHOADES

Wabash Plain Dealer Reporter


The pending sale of GDX Automotive, which includes the Wabash plant, was confirmed today by a representative for Cerberus Capital Management, a New York-based investment firm.

Richard Auletta, media spokesman for the company, told The Plain Dealer this morning via telephone that the deal struck with GDX parent company GenCorp Inc. was official, but not yet final.

"The closing schedule is set for this fall," he said. "But until then I'm sure you can understand why it would not be appropriate for me (to discuss the details).

"Cerberus is a committed equitable partner in all its deals and is making this acquisition because we have a real interest in this company," Auletta said.

Cerberus purchased the GDX Automotive plants for a purported $147 million. Auletta would not confirm that figure.

Cerberus has been referred to as an "equity firm," a "turn-around company," and even a "hedge fund company." But according to Auletta, Cerberus officials historically have been "long-term investors."

"We look for distressed assets and under-performing companies," he explained. "We have purchased such companies as Fila, Formica, Alamo and National Car Rental, Aozora Bank of Japan and Air Canada. We have done well with many such companies."

GenCorp was founded in 1915 as General Tire & Rubber Co. The tire business was sold in the late 1980s following a hostile takeover attempt.

With the sale of its 16 GDX plants worldwide — which includes the Wabash plant — GenCorp will concentrate on its aerospace line, Aerojet-General Corp, with makes airframe structures, advanced munitions and propulsion systems for space and defense applications.

GDX Automotive in Wabash employs about 700 people.