Chrysler plant sells for $45.5 million
March 10, 2010
Twinsburg — The Chrysler Stamping Plant on Route 82 has sold for $45.5 million to an unnamed bidder March 10, and the winning bid will be presented to a judge with the U.S. Bankruptcy Court in New York March 11.
Mayor Katherine Procop said March 10 she was pleased with the sale price — and the likelihood that industrial manufacturing jobs will remain at the 2-million-square-foot plant.
“Obviously, we believed the property was worth a lot more than the $27.5 million that was originally offered ... it has great potential,” she said. “Our hope is that their intent is to keep manufacturing jobs at the plant.”
It was not immediately known if the stamping presses would remain at the facility.
Jones Day attorneys, representing the bankrupt portion of Chrysler LLC, did not return a call seeking comment.
The firm hosted the March 10 auction at its New York office and plans to file the bid March 11, which will indicate how many parties were involved in the sale and their identities.
The first of the two bids received came from Twinsburg Industrial Park LLC, part of the Cleveland-based Park Corp. investment company, which offered $27.5 million for the sprawling complex Feb. 16.
The second, winning bidder was announced March 5, when bids were due to the bankruptcy court. The initial bid from the second bidder had to have been at least $28.25 million, a perk the Park Corp. enjoyed by making the first bid.
As well, Park received a $600,000 break-up fee following the auction, another bonus given to Park for offering the initial bid.
Chrysler announced May 1, 2009, that the Twinsburg plant would be one of eight U.S. Chrysler sites not to be included in the sale to the new Chrysler. The plant is scheduled to close in June.
The plant has been an anchor for jobs and tax revenue for the city of Twinsburg for more than 50 years, making up about 13 percent of Twinsburg’s income tax revenue in 2009.
There are currently about 400 employees still working at the plant.
LINK:
Twinsburgbulletin.com - Chrysler plant sells for $45.5 million
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