Garrett Motion Inc., a key supplier of automotive turbochargers and other equipment, is exploring strategic options including a sale, people familiar with the matter told Bloomberg.
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 authorized to speak publicly. Garrett is expected to attract interest from companies looking to enhance their EV operations, one of the people said. Nothing is imminent, the people added.
Garrett shares rose 7.5 percent in New York trading Wednesday afternoon, giving the company a market value of about $491 million. It also has about $1.2 billion of debt, for an enterprise value of about $1.5 billion.
A representative for Garrett declined to comment.
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 CEO Olivier Rabiller, Garrett primarily makes turbo-charging systems for electrified vehicles.
Garrett ranks No. 60 on the Automotive News list of the top 100 global suppliers with worldwide sales to automakers of $3.23 billion in 2021.