Auto parts maker agrees to be acquired

Private equity firm Cerberus Capital Management has agreed to buy Tower Automotive Inc. in a deal valued at about $1 billion, the U.S. auto parts maker said Wednesday.

Novi, Mich.-based Tower, a maker of auto body frames that filed for bankruptcy protection in February 2005, said the sale required U.S. Bankruptcy Court approval and was subject to an auction should other investors submit qualified bids.

Bids would be accepted through June 15, and an auction would be held June 21, Tower said.

Cerberus already is co-leader of an investor group planning an investment of up to $3.4 billion to support auto parts maker Delphi Corp.’s emergence from bankruptcy in exchange for a controlling stake in the reorganized Troy, Mich.-based company.

The private equity firm also may seek to buy Detroit-based Chrysler Group, the troubled U.S. arm of German parent DaimlerChrysler, and a source familiar with the matter has said Cerberus is lead bidder for troubled auto parts maker Collins & Aikman Corp.’s flooring and acoustic components unit. The Southfield, Mich., company also is under bankruptcy protection.