First Brands Group has initiated a formal sale process to market its aftermarket automotive parts business during ongoing Chapter 11 proceedings. The Rochester Hills, Michigan-based company seeks buyers for its operations as a whole or in segments.
Highlights
- Ad Hoc Group of lenders negotiating to provide additional DIP financing and serve as stalking horse bidder for select business units
- Sale process targets completion in Q1 2026, subject to court approval
- Portfolio includes brake brands Raybestos, Centric Parts, StopTech, and Carlson alongside filtration, wiper, and towing products
- Company operates within the $410 billion North American automotive aftermarket sector
DIP Financing and Stalking Horse Discussions
First Brands is negotiating with an Ad Hoc Group of lenders regarding an agreement that would provide additional debtor-in-possession financing. The lender group would also serve as the stalking horse bidder for certain business segments.
Upon court approval, the funding would enable First Brands to maintain supply continuity and customer service across its core brands throughout the sale process.
See also: The Fall of First Brands: How Did We Get Here & What Comes Next
Sale Process Structure
The company plans to file a motion seeking authorization to conduct the sale under Section 363 of the U.S. Bankruptcy Code. The process aims to achieve the highest or best bid for assets.
“Launching the marketing process represents a decisive step toward positioning our brands for long-term stability under new ownership,” said Charles Moore, Interim Chief Executive Officer.
Portfolio Overview
First Brands operates a global manufacturing and distribution network spanning multiple product categories:
- Brakes: Raybestos, Centric Parts, StopTech, Carlson brake hardware
- Filtration: FRAM, Luber-finer
- Wipers: TRICO, ANCO, Michelin licensed blades
- Ignition: Autolite spark plugs
- Fuel systems: Carter pumps
- Towing: Reese, Draw-Tite, Bulldog, Tekonsha, Fulton, Westfalia, Hopkins
The portfolio also includes CARDONE remanufactured parts and Philips licensed aftermarket lighting.
Advisors
First Brands Group:
- Legal counsel: Weil, Gotshal and Manges LLP
- Investment banker: Lazard
- Financial advisor: Alvarez & Marsal
- Strategic communications: C Street Advisory Group
Ad Hoc Group:
- Legal counsel: Gibson, Dunn & Crutcher LLP
- Investment banker: Evercore
- Financial advisor: Huron Consulting Group
Stakeholder Resources
Additional information regarding the Chapter 11 process is available at https://restructuring.ra.kroll.com/firstbrands.
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