C&A unit attracts Cerberus.(Collins and Aikman Corp., Cerberus Capital Management L.P.)

Automotive News, December, 2006 by Barkholz, David; Sherefkin, Robert

Byline: David Barkholz, Robert Sherefkin

Now that it's auctioning its operations to the highest bidders, troubled auto supplier Collins & Aikman Corp. has found a well-heeled investment firm to bid on its lucrative automotive carpeting and soft trim business.

Last week, two sources told Automotive News that Cerberus Capital Management LP, of New York, is the lead bidder to acquire the unit. Collins & Aikman is the largest producer of automotive carpeting and sound insulation in North America and supplies most major automakers. The unit generates $750 million in annual sales.

Cerberus' financial strength would be a great relief for Collins & Aikman customers, which subsidized the supplier after seeking bankruptcy protection in 2005.

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