Private equity firm Platinum Equity is exploring the sale of Exeter, Pa.-based Keystone Automotive, a manufacturer of aftermarket equipment such as light-truck accessories, specialty wheels, tires and suspension parts, and high-performance products.
Sources familiar with the matter said Platinum Equity, which acquired Keystone through an out-of-court debt restructuring in 2011, has hired investment banks Baird and UBS to run a sale process that could collect between $400 million and $500 million, as reported by Soyoung Kim for Reuters.
The sources declined to be named because the matter is not public.
Private equity firm Bain Capital LLC bought Keystone in 2003 from investors led by buyout firm Advent International for about $440 million. However, Bain struggled during the recession and had its equity wiped out when Keystone agreed to out-of-court restructuring in 2011.
Platinum Equity eventually acquired a majority interest in Keystone by converting its debt to equity.