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]
Become a TTAC insider. Get the latest news, features, TTAC takes, and everything else that gets to the truth about cars first by subscribing to our newsletter.
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.
Latest Car ReviewsRead more
Latest Product ReviewsRead more
- Beachy Asphalt only works to keep the dirt road below it dry, and it is the dry dirt that holds up the asphalt surface to make a smooth road surface. Once the asphalt cracks or a spring wells up and the dirt gets wet, all bets are off. It is usually due to a spring that perennial potholes form. They are very hard to get rid of.
- JamesG I’m the owner of the featured car that’s currently on EBay. Thanks for such a nice write up on these cars. Mine happens to be in excellent condition and the photos don’t do it justice. The HT4100 isn’t as bad as some made them out to be and they can go 200k miles with proper maintenance. I also own a 79 w/the analog fuel injected 5.7 350 which should have been used through 1985 but ever-increasing CAFE regulations called for more economical power plants which made GM shelve this great motor.
- Jeff S Adam on Rare Classic Cars recently bought a pristine 71 Kenosha Cadillac.https://www.youtube.com/watch?v=lY-G2dExgXE&ab_channel=RareClassicCars%26AutomotiveHistory
- Jeff S Wouldn't most of the large suvs in NYC be livery vehicles? If so that would be hurting those who make their living by driving for hire.
- EBFlex Yes their mass transit is great if you want to be beat within an inch of your life or pushed onto the tracks by some random psycho.