Carlyle sells auto parts supplier Diversified Machine Inc.

BEVERLY HILLS, Calif. ― Private equity firm Carlyle Group said it sold auto parts supplier Diversified Machine Inc. to Platinum Equity for an undisclosed amount.

In August, sources told Reuters that the PE firm was seeking a buyer for DMI and that the business may fetch more than $400 million.

Carlyle had formed DMI by acquiring all assets of UniBoring out of bankruptcy in 2005, and renamed it Diversified Machine Inc — a precision machining company that makes chassis and components and modules for automakers and parts suppliers.

CEO of DMI, Bruce Swift, will continue in his role following the deal.

Platinum Equity is a firm that specializes in buying distressed assets.

Carlyle, Cerberus, Platinum eye Cooper Standard, according to sources

NEW YORK ― Carlyle Group, Cerberus Capital Management and Platinum Equity are among the private equity firms interested in buying U.S. auto parts maker Cooper Standard , but tough financing markets make a deal uncertain, people familiar with the matter said.

Cooper Standard, which has hired JPMorgan Chase and Lazard Ltd to explore a sale, is in the second round of the auction, which has been moving slowly in a volatile financing market, one of the people said.

While financing remains relatively cheap for companies with strong credit ratings, buyout deals typically need leveraged loans and high-yield bonds — the riskier form of lending that carries some of the highest interest rates and often is the first financing to be withdrawn when credit tightens.

Representatives for Carlyle, Cerberus and Platinum Equity all declined to comment. Cooper was not immediately available for comment.

Wall Street banks are becoming more selective about what financing deals they commit to or are stiffening lending terms, making buyout deals like Cooper Standard more costly for buyers and therefore limiting their ability to pay.

The company emerged from bankruptcy in May 2010 under the control of a handful of hedge funds, including Silver Point Capital and Oak Hill Advisors. The Novi, Michigan-based company, which makes body sealing systems and fluid handling systems for the automotive industry, could be valued at more than $1.5 billion, several people told Reuters previously.

Meanwhile, Carlyle is also bidding for another auto parts supplier TI Automotive, which competes with Cooper Standard in the fluid system segment and has been considering a sale since early this year, people familiar with the matter said on Sept. 29. Bain Capital and London-based buyout firm Pamplona Capital Management are the other remaining bidders for TI Automotive, the people said at that time.

TI Automotive and Cooper Standard are the world’s two largest suppliers of systems that control, sense and deliver fluids and vapors in vehicles. But TI has greater exposure to the fast-growing Asian markets, drawing roughly a quarter of its revenue from China and other Asian markets.

Private equity giant Carlyle files for IPO; could raise $1 billion

WASHINGTON ― Carlyle Group filed on Tuesday for a $100 million offering for its common units, making it the latest private equity group to list on public markets.

In June, Reuters reported that Carlyle was moving closer to an initial public offering and could raise around $1 billion.

Carlyle was valued at $20 billion in September 2007, when an investment unit of the Abu Dhabi government bought a 7.5 percent stake, before the credit crisis sent stock markets sliding.

Carlyle will join rivals Blackstone Group LP, Kohlberg Kravis Roberts & Co and Apollo Global Management as publicly traded private equity companies.

Washington-based Carlyle told the U.S. Securities and Exchange Commission in a preliminary prospectus that J.P. Morgan, Citigroup and Credit Suisse are underwriting the IPO.

Carlyle, co-founded in 1987 by David Rubenstein, said it generated economic net income, a measure of profitability used by private equity firms, of over $1 billion in 2010 and approximately $770 million in the first six months of this year.

As of end-June, it said it had $153 billion in assets under management.

Carlyle has invested in companies including Dunkin Brands, Alliance Boots and Freescale Semiconductor.

The filing did not reveal how many units the company planned to sell or their expected price.

The amount of money a company says it plans to raise in its first IPO filings is used to calculate registration fees. The final size of the IPO could be different.