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relinquish control to suppliers
lowing the close of a deal in the coming months to sell its remaining business to Texas-based Mr. Cooper Group for $324 million in cash.
e deal with Mr. Cooper comes just more than one month after the struggling Home Point announced a sale of its core mortgage lending business to e Loan Store Inc., based in Tucson, Ariz.
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e deal to sell to Mr. Cooper makes for a win for Stone Point Capital, the Connecticut-based private equity rm that birthed Home Point and provided capital for M&A activity in the early stages of the company, which quickly grew via acquisitions prior to going public.
Funds connected to Stone Point hold around 90% of Home Point, and the proposed acquisition price of $2.33 per share makes for a premium of about 22% over the closing share price Wednesday of $1.91.
BY KURT NAGL
As automakers ramp up electric vehicle production and scramble to secure their battery supply chains, they are meddling less in the business of traditional parts suppliers, according to an industry expert and executive.
at’s because OEMs are faced with the once-in-a-century challenge of reinventing their companies, a capital-intensive task that leaves fewer resources for the legacy business.
An electric vehicle has a fraction of the total parts in a gas-powered car, which poses an existential threat for parts producers tied to in- ternal combustion. But for some large suppliers, the consolidation of the supply base and outsourcing for traditional parts is a “golden opportunity,” said Mark Barrott, principal at Plante Moran who specializes in the automotive industry.
As a matter of necessity, automakers are letting tier-one suppliers take the driver’s seat when it comes to producing some parts of the car that won’t be eliminated with electri cation, Barrott said. At the same time, carmakers are more hawkish about controlling the future of the vehicle.
“As we move into this electric future, what OEMs have become very focused around is data, making sure that they continue to own the brains of the vehicles, which in the
