According to people familiar with the matter, Bain Capital LLC is in advanced talks to acquire auto parts supplier TI Automotive Ltd in a deal approaching $2 billion.
It is the buyout firm’s second attempt to buy TI Automotive in the last two years. In late 2011, Bain was one of the three private equity firms that bid for TI Automotive, which makes fuel tanks as well as braking and powertrain components for cars and trucks. The sale process was pulled, however, amid deteriorating financing conditions.
TI Automotive, which was picked up by a consortium of funds led by Oaktree Capital Group LLC and Duquesne Capital Management LLC in a 2007 debt restructuring, was put up for sale again in the summer. Still, there is no guarantee that the latest discussions with Bain will lead to a deal, the people cautioned, asking not to be named because the matter is not public.
TI Automotive had reached out to other private equity firms as well as companies in its sector but found little interest, the people said. It could not be learned if Bain is the only party currently in talks with TI Automotive, which sought second-round bids by late October.
TI Automotive and U.S. rival Cooper-Standard Holdings Inc are the world’s two largest suppliers of systems that control, sense and deliver fluids and vapors in vehicles. TI Automotive has more than 20,000 employees at 130 locations worldwide, and supplies all of the world’s major automakers, according to its website.