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Patriarch to acquire majority ownership of Dura Automotive Systems

Affiliates of Patriarch Partners have entered into an agreement to recapitalise and acquire a majority interest in Dura Automotive Systems.

Under the agreement, Patriarch will invest up to USD125m of capital and will take a controlling stake in Dura.

This transaction completes the transformation of Dura, a company that emerged from Chapter 11 bankruptcy protection in June 2008, into an automotive supplier with a strong balance sheet and a broad low-cost global presence.

The transaction is subject to customary closing conditions, including German regulatory approval.

Patriarch also intends to pursue an integration of Global Automotive Systems, another Patriarch-affiliated company, with Dura. Global Automotive Systems has a broad range of metal-forming, welding and assembly capabilities, with material expertise ranging from aluminum and low-carbon steel to ultra high-strength steel. This would provide Dura with a North American-based manufacturing footprint for expanding its Structure & Safety Systems product lines, which include door structures, parking brakes and other components. The combined companies would operate under the Dura brand name.

"Patriarch is committed to the preservation of jobs and the strengthening of industry through the confluence of manufacturing and technology. This investment exemplifies that strategy," says Lynn Tilton, chief executive of Patriarch Partners. "The strategic investment in Dura and subsequent integration with Global Automotive Systems significantly enhances Dura’s capabilities in North America and creates a robust global supplier with the depth and breadth that will offer rich benefits to Dura’s customers and other stakeholders."

"Over the last 15 months Dura has accomplished a comprehensive business restructuring and is now financially poised for growth," adds Timothy D. Leuliette, chairman, president and chief executive of Dura. "That operational restructuring made our company more globally competitive and is a testament to the commitment and skills of our employees.

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