Carlyle Group Seeks Buyer for Metaldyne

Private equity firm Carlyle Group LP has hired Bank of America Merrill Lynch to advise on the possible sale of its Metaldyne LLC unit, Reuters reports.

The news service cites anonymous sources who say Carlyle hopes to garner as much as $1 billion for the Plymouth, Mich.-based auto supplier. Reuters says the sale process, which is expected to begin in a few weeks, could attract bids from private equity and automotive firms.

Washington, D.C.-based Carlyle led an investor group that acquired Metaldyne out of bankruptcy in 2009. The maker of engine connecting rods, transmission valve bodies and other metal-formed components now generates about $1 billion in annual revenue.

Reuters says private equity firms are taking advantage of recovering U.S. debt and equity markets to cash out some of their earlier investments in distressed companies. Carlyle took its Allison Transmission Holdings Inc. public last month and sold auto supplier Diversified Machine Inc. to Platinum Equity in December.