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First Brands Sells Harley Parts Unit for $50 Million

Bloomberg Markets •
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First Brands Group, the bankrupt auto parts manufacturer, has agreed to sell one of its four remaining operating businesses to an affiliate of Active Dynamics Group for $50 million. The unit being sold specializes in producing components for Harley-Davidson motorcycles, marking a significant divestiture as the company continues its restructuring efforts under bankruptcy protection.

Active Dynamics Group, known for manufacturing pollution control systems, will acquire the Harley parts business as part of its expansion strategy. The deal represents a strategic move for Active Dynamics to diversify its product portfolio beyond emissions technology. For First Brands, the sale is part of a broader effort to streamline operations and maximize value for creditors during the bankruptcy process.

The transaction underscores the ongoing consolidation in the automotive parts industry, where specialized manufacturers are seeking scale and diversification. With this sale, First Brands will retain only three operating businesses, focusing its remaining resources on core competencies. The $50 million price tag reflects both the strategic value of the Harley parts business and the challenging market conditions facing specialty auto parts manufacturers.