Cardone Industries and TPG Capital L.P., a global private investment firm, announced they have terminated discussions relating to the acquisition of Cardone Industries’ North American operations.
(The company had announced on Nov. 11, 2011, that Cardone Industries would be sold to TPG Capital. For background, click here.)
The Cardone family will retain ownership and control of the company. The announcement follows a mutual decision by Cardone and TPG to end discussions related to the acquisition.
“Cardone and TPG agree that the automotive aftermarket and the remanufacturing industry is fundamentally strong and represents tremendous potential for future growth, particularly through the strategic platform that we have developed,” says Michael Cardone Jr., chairman and CEO of Cardone Industries. “We also agree that the timing for the acquisition is not appropriate. Accordingly, we have mutually agreed to end our discussions.”
Going forward, the Cardone family will retain ownership of the company and will continue to remain actively involved in its operations.
Cardone recently divested its European operations in a separate transaction and will focus its efforts on its profitable North American operations, the optimization of its remanufacturing site in Mexico, and the completion of its new Dallas logistics hub.
“We look forward to continuing the strong relationships with our customers that we have built on a foundation of high quality products and service excellence,” says Cardone.
“Cardone’s reputation for quality products and reliability is unmatched in the remanufactured automotive industry, and we remain impressed with the company that the Cardone family and its employees have built over the past several decades,” says Kevin Burns, partner at TPG Capital. “We wish them the best as they continue to move forward and build upon their achievements.”
Cardone Industries, founded in 1970, is a privately held, family-owned and operated company headquartered in Philadelphia, Pa. Three generations of the Cardone family have built the company into a world leader in the automotive remanufacturing industry.