Garrett Motion Reportedly Looking for Buyers

Matt Posky
by Matt Posky
garrett motion reportedly looking for buyers

If you’ve ever shopped for an aftermarket turbocharger, you’ve undoubtedly heard of Garrett. Reports have surfaced claiming that the company is considering its future, with allegations that a sale could be in the works.

While the supplier focuses on an array of performance products, forced induction is its mainstay. However, Bloomberg is reporting that Garrett Motion may be interested in handing off the business to the highest bidder.

Formerly a part of Honeywell Transportation Systems, Garrett was spun off as an independent entity in 2018. Unfortunately, it filed for Chapter 11 bankruptcy in 2020, following some trouble adhering to loan agreements. The businesses managed to come out on the other side more-or-less intact the following year. But not without some financial assistance from Centerbridge Partners and Oaktree Capital Management.

As for the likelihood of a sale, unnamed insiders were reported as saying Garrett is just considering its options. While a buyout seems like the most probable outcome, nobody could give any firm details because they’re not supposed to be speaking on the matter. Statements like those always make you wonder why the information was leaked in the first place. But news that a sale was even a prospect seems to have helped the brand’s stock performance.

Garrett shares rose 7.5 percent on the New York Stock Exchange on Wednesday afternoon. That puts its market value right around $491 million. Though the report noted that the business is still sitting on $1.2 billion of debt – which is less than ideal for an enterprise estimated to be worth $1.5 billion in total.

For now, Garrett Motion isn’t interested in discussing the matter publicly. However, Bloomberg wrote that its insider sources were claiming it is looking for companies seeking to enhance their EV operations. Presumably, they’re referencing hybridized vehicles, which Garrett has previously hinted would be the future of the brand. But nothing was said to be concrete, suggesting there is no clear front runner for the prospective buyout.

[Image: Garrett Motion]

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3 of 6 comments
  • Dukeisduke Dukeisduke on Nov 03, 2022

    Did they become "Garrett Motion" when they were taken over by Honeywell? I remember when they were Garrett AiResearch. They made lots of turbos for OEMs like Ford (Mustang Turbo, Thunderbird Turbo Coupe), and GM (Turbo Regal, Grand National, GNX).

  • RHD RHD on Nov 04, 2022

    Corporate moneymakers have a habit of loading debt onto one division, then spinning it off to suffer and slowly die while trying to pay it off. They are the same people who buy a business, then make that same business pay off the loan used to purchase it. The employees suffer as "efficiencies" are implemented in order to keep the ship afloat. I'm sure Business majors have a name for this piratical strategy.

    • Craiger Craiger 24 hours ago

      If a division of a company is going to be made separate from the parent company, doesn't the parent company first have to find prospective owners who are willing to buy it, either privately or in the capital markets?

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