Supplier Dayco receives two offers, could fetch $1 billion, report says

NEW YORK -- Dayco Products LLC, a maker of engine parts for vehicles and industrial equipment, has received offers from bidders including Apollo Global Management LLC and Gores Group, people familiar with the matter told Bloomberg.The suburban Detroit supplier could fetch about $1 billion, said the people, who asked to not be identified because the matter isn't public. The company, which is being advised by Deutsche Bank AG, could reach a deal soon, they said, adding that no decision has been made and its owners could opt to keep the business.Dayco, formerly known as Mark IV Industries with roots dating back to 1905, makes and sells drive belts, water pumps, hydraulic hoses and other parts for helping engines run smoothly, according to its website. It sells them directly to original equipment manufacturers and through aftermarket channels.The company is owned by an investor group that includes Oaktree Capital Group LLC and TPG, according to a Moody's Investors Service research note in October. It had about $1 billion in sales in the 12 months ending August 31, Moody's said.Representatives for Apollo and Deutsche Bank declined to comment. Representatives for Dayco, TPG, Oaktree and Gores Group didn't respond to requests for comment. Gores Group is owned by investor Tom Gores, a well known name in Detroit for his ownership of the NBA's Detroit Pistons basketball organization. Mark IV filed for bankruptcy in 2009 under previous owner Sun Capital Partners, as the recession squeezed auto parts suppliers. Sun Capital had acquired the company a year earlier from BC Partners Ltd., which sold the company at a loss, people familiar with the matter said at the time.Dayco's current owners tried to sell the company in 2015, but that process stalled when offers came in too low, the people said

Supplier Dayco receives two offers, could fetch $1 billion, report says

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