Garrett Motion exploring options Including sale

CHICAGO: Garrett Motion Inc., a maker of turbochargers and other automotive equipment, is exploring strategic options including a sale, according to people familiar with the matter.

The stock rose as much as 17%.

The Rolle, Switzerland-based company is working with an adviser on a possible sale, said the people, who asked not to be identified because they weren’t authoriSed to speak publicly.

Garrett is expected to attract interest from companies looking to enhance their electric-vehicle operations, one of the people said. Nothing is imminent, the people added.

Garrett was up 7.8% at 1:16 p.m. Wednesday in New York, giving it a market value of about $479 million. Including the company’s net debt and convertible preferred stock, it has an enterprise value of around US$3.5 billion.

"We do not comment on rumours or speculation,” a representative for Garrett said in an emailed statement.

Garrett, originally known as Honeywell Transportation Systems, was spun off in 2018.

It filed for Chapter 11 bankruptcy protection in 2020 after struggling with loan repayments. The company emerged from bankruptcy last year with the support of stakeholders including Centerbridge Partners and Oaktree Capital Management, according to a statement.

Led by president and chief executive officer Olivier Rabiller, Garrett makes turbo-charging systems for electrified vehicles. It generated about US$3.6 billion in revenue in 2021.