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Family to retain control of Cardone Industries

By Attracta Mooney

The Cardone family has scrapped plans to sell the majority of its shares in the eponymous industrial company, just months after it announced that a deal with a private investment firm would go ahead.

In a statement released on 20 January, Cardone Industries, a remanufacturer of autoparts, said it had “terminated discussions” with TPG Capital, the firm which was expected to become the controlling shareholder.

In November, the companies said the deal would probably close by the end of 2011, but in early January, the US-based family business sought loans of $300 million (€230 million) to back the buyout of its North American operations by TPG Capital.

However, both parties have since agreed “that the timing for the acquisition is not appropriate”, said third-generation Michael Cardone Jr, chairman and chief executive of Cardone Industries.

The family, which founded the business in 1970, will retain ownership of the US business and remain involved in its management.

The company’s operations in Belgium and the UK were sold off in December to Car Parts Industries.