ROCHESTER HILLS, Mich.--(BUSINESS WIRE)--Fluid Routing Solutions, Inc. (“FRS”), a leading manufacturer of fuel systems and fluid management systems for the light vehicle industry, today announced that it has completed the sale of its fuel systems and hose extrusion operations to an affiliate of Sun Capital Partners, Inc. (“Sun Capital”). The parent company of FRS filed for voluntary protection under Chapter 11 of the Bankruptcy Code on February 6, 2009 in the U.S. Bankruptcy Court for the District of Delaware (the "Bankruptcy Court"), due to liquidity constraints primarily caused by a severe contraction in automotive industry volumes. To facilitate the restructuring process and allow for a sale of the ongoing business, an affiliate of Sun Capital agreed to provide a debtor-in-possession loan facility (“DIP”) to FRS upon the bankruptcy filing. The DIP financing allowed FRS to continue to pay employees and vendors, thus providing operational and financial stability as it proceeded with the sale process of the fuel and hose extrusion businesses. An affiliate of Sun Capital served as the stalking horse bidder for the fuel and hose extrusion assets under Section 363 of the U.S. Bankruptcy Code, won the auction, and the Bankruptcy Court approved the sale on March 24, 2009. The fuel and hose business will retain the FRS name.
"With Sun Capital’s DIP financing and acquisition of the fuel and hose extrusion operations, we were able to successfully emerge from our reorganization under Chapter 11, while maintaining normal operations in all of our facilities, save approximately 900 jobs which would have been otherwise lost, and provide continuity of supply to our customers," said Mike Laisure, Chief Executive Officer, Fluid Routing Solutions. “We are pleased that we can continue to focus on serving our customers, with a strong balance sheet and a leaner and more focused organization that will position FRS to compete more effectively in our fuel systems and hose product categories.”
Additional information about the FRS restructuring is available at site, www.fluidrouting.com. For access to Bankruptcy Court documents and other general information about the Chapter 11 cases, please visit http://chapter11.epiqsystems.com/fluidrouting.
About Fluid Routing Solutions, Inc.
FRS is a leading designer and manufacturer of innovative, highly-engineered fuel management systems and hose extrusion products for major OEMs in the automotive industry. Fuel management systems products are fuel filler assemblies. Hose extrusion products include several forms of manufactured hose including bulk hose, formed hose and radiator hose. FRS has a well established supplier base predominately based in North America and benefits from many long-term relationships. The Company sells to automotive manufacturers in North America. The Company’s primary end customers include Toyota, General Motors, Ford and Chrysler. FRS has three production facilities located in Florida, Michigan, and Tennessee.
About Sun Capital Partners, Inc.
Sun Capital Partners, Inc. is a leading private investment firm focused on leveraged buyouts, equity, debt, and other investments in market-leading companies that can benefit from its in-house operating professionals and experience. Sun Capital affiliates have invested in and managed more than 200 companies worldwide since Sun Capital’s inception in 1995 with combined sales in excess of $40 billion. Sun Capital has offices in Boca Raton, Los Angeles and New York, and affiliates with offices in London, Paris, Frankfort, and Shenzhen and Shanghai, China. Sun Capital has been one of the most active private investment firms in the U.S., closing 161 transactions from 2002 through 2008, including 30 acquisitions in 2005, 33 transactions in 2006, 39 transactions in 2007 and 26 transactions in 2008 and was the recipient of the M&A Advisor Private Equity Firm of 2008 award.