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Platinum Equity Said to Be Buying Diversified Machine from Carlyle

It looks like the Carlyle Group is selling Diversified Machine to Platinum Equity.

Wixom, Mich.-based Diversified Machine is in the market now for a $235 million financing that backs Platinum Equity’s takeover, according to my compadres at Thomson Reuters Loan Pricing Corp. The deal includes a $175 million term loan and a $60 million revolver, LPC says.

The real shocker? Platinum is investing $191 million equity or nearly 51%, LPC says.

I’ve been told that equity checks are getting bigger for PE firm but this is a lot. Officials for Platinum couldn’t be reached for comment.

Moody’s Investors Service assigned a “B2” corporate family and probability of default rating to Diversified Machine. Moody’s also gave DMI’s $175 million term loan a “B3” rating. The rating outlook was stable, Moody’s said.

DMI is expected to have an adequate liquidity profile over the near-term, Moody’s said. Once the takeover by Platinum goes through, DMI’s liquidity will mainly be supported by a $60 million asset-based revolving credit facility, Moody’s said.

The Carlyle Group formed DMI in 2005. The company makes and assembles fully-engineered chassis, powertrain components and modules for automotive OEMs and Tier 1 suppliers. The company produced $450 million in revenue last year and $335 million in 2009, according to Crain’s Detroit Business.

In August, Reuters reported that Carlyle was seeking a buyer for DMI. Evercore Partners advised on the sale. Crain’s Detroit Business reported in October that Platinum was buying DMI.

DMI and Carlyle couldn’t be reached for comment.