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Sept. 10 (Bloomberg) -- International Automotive Components Group, the auto-parts supplier owned by billionaire Wilbur Ross, is delaying its planned initial public offering until at least January because of market turmoil in the U.S. and Europe, two people familiar with the matter said.
IAC hired Bank of America Corp., JPMorgan Chase & Co. and Deutsche Bank AG and filed a registration statement with the U.S. Securities and Exchange Commission earlier this year, said one of the people, who asked not to be identified because the plans are private. The company initially aimed to hold the offering in the first half of the year, that person said.
Some large acquisitions and IPOs have been held up because consumers and corporations in the U.S. and Europe are constrained by tighter lending standards, budget and debt concerns and lower consumer confidence, Tim Leuliette, who runs an advisory firm that works with Chinese companies, said in an interview.
“Things are on pause, but you don’t know whether they’re up or down,” said Leuliette, a former chief executive officer of supplier Metaldyne Corp. “Until there’s some certainty on the budget side, on the Euro, until there’s some confidence from the consumer, everyone’s just kind of hanging fire.”
Ross, who built his fortune buying bankrupt steel, coal and textile companies, assembled IAC through 14 takeovers starting in 2006. IAC, which makes instrument displays, door panels and headliners, had sales of about $3.75 billion in 2010 and employs about 22,000 people in 16 countries.
The company had net income of $25 million last year and $3 million in this year’s first half, according to the filing by Luxembourg-based IAC.
John Yiannacopoulos, a spokesman at Bank of America, declined to comment, as did Tasha Pelio, a JPMorgan spokeswoman, and Scott Helfman, a Deutsche Bank spokesman. IAC declined to comment in an e-mail.
IAC’s largest customers are General Motors Co., Ford Motor Co. and Chrysler Group LLC, which is controlled by Fiat SpA.
IAC’s decision to delay its offering comes as industrywide sales in the U.S. have slowed from the pace of early this year. U.S. light-vehicle sales may rise to 12.7 million cars and light trucks this year, the average estimate of 18 analysts surveyed last month by Bloomberg. The average estimate in April was for 2011 sales of 13 million light vehicles.
Ford said yesterday U.S. vehicle sales may not reach the low end of the company’s forecast range for 2011. Ford had projected industrywide 2011 sales of 13 million to 13.5 million, including medium- and heavy-duty trucks.
“We see signs of pent-up demand,” Chief Financial Officer Lewis Booth said yesterday, speaking at a UBS conference in London. “What it’s going to take for that pent-up demand to emerge is some confidence in what the future will look like.”
Ford, based in Dearborn, Michigan, anticipated a modest U.S. recovery, “but we didn’t expect it to be quite as slow as it’s been,” Booth said.
U.S. automobile sales rebounded 11 percent to 11.6 million vehicles last year from a 27-year low in 2009, according to Autodata Corp. in Woodcliff Lake, New Jersey. They averaged 16.8 million annually from 2000 to 2007.
IAC’s North American headquarters are in Southfield, Michigan. Jim Kamsickas is president of IAC North America and Asia, which represents about two-thirds of the company’s sales. Jens Hohnel is president of the Europe division. The two are co- chief executive officers.
--With assistance from Keith Naughton in Southfield, Michigan and Lee Spears in New York. Editors: Bill Koenig, Jamie Butters
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