NOVI, Mich. — Hephaestus Holdings Inc., a manufacturer of forged parts for the North American automotive industry, has announced that its subsidiary, Kyklos Inc., has entered into an asset purchase agreement with Delphi Corporation, Delphi Automotive Systems LLC and Delphi Technologies Inc. to acquire substantially all of the non-cash assets primarily used in Delphi's North American Bearings Business.
Kyklos entered into the agreement after it was declared the winning bidder in an auction conducted as part of a sale process under Section 363 of the United States Bankruptcy Code, and will acquire the Bearings Business free and clear of substantially all liens, claims, encumbrances, and interests.
The sale of the Bearings Business must be approved by the U.S. Bankruptcy Court in a hearing that will be held on March 19, 2008. Closing of the transaction is expected to occur on or before April 30, 2008.
The Bearings Business produces Gen III wheel bearings in North America and is a supplier to General Motors.
Kyklos is acquiring substantially all of the Bearings Business's inventory, intellectual property, and machinery and equipment, including a manufacturing and engineering facility located in Sandusky, Ohio.
Kyklos will offer employment to all of the Bearings Business's employees and is expecting to assume all of the customer and supplier contracts.