$1-billion offer on table for Collins & Aikman
BY JEFFREY McCRACKEN
FREE PRESS BUSINESS WRITER
August 9, 2005
Dearborn auto supplier Plastech Engineered Products Inc. is offering up to $1 billion in cash to purchase rival supplier Collins & Aikman Corp. out of bankruptcy.
Plastech's offer is subject to its examination of Collins & Aikman's finances and operations, according to a letter sent to C&A on Monday and obtained by the Free Press. The offer could be for less than $1 billion if it finds C&A is in worse shape than Plastech estimates.
Plastech, which has annual sales of $1.3 billion, is the largest female-owned business in Michigan.
In the letter sent to C&A's board of directors, lawyers, financial advisers and creditors, Plastech said that it wants to start the evaluation process "as soon as possible."
Its owner, Julie Brown, and Plastech officials want to meet with C&A's creditors and unions directly to discuss the offer and push for their support.
Troy-based C&A tumbled into bankruptcy May 17, shortly after its former Chief Executive Officer David Stockman was forced out.
C&A, which has annual sales of $4 billion, makes parts such as instrument panels on 90% of the vehicles built in the country.
Plastech said in the letter that it thinks it will receive "strong support" for the bid from Detroit's three automakers.
It has hired the prominent Wall Street financial firm of Goldman Sachs to line up funding for the offer.
It also said in the letter that it will contribute its own funds to the deal.
AI
