First Brands Group, a major global supplier of aftermarket automotive parts, is officially testing the market.

The company announced it has launched a formal sale process to market and sell its business—either as a whole or in parts—as it works toward emerging from Chapter 11 and transitioning to new ownership. The move is designed to maximize stakeholder value while preserving continuity for customers, vendors, and employees during the restructuring.

The process could reshape ownership of some of the most recognizable names in the automotive aftermarket, including FRAM, Raybestos, Trico, Autolite, and Reese.

A sale process tied to Chapter 11 exit

First Brands’ decision comes as part of its ongoing Chapter 11 proceedings, where the company is seeking a faster and more certain path to stability under new ownership.

According to the company, the sale process is intended to:

• Accelerate emergence from bankruptcy

• Support a transition to long-term ownership

• Position its core brands for their next growth phase

The company said it is exploring a range of outcomes, from selling the business in its entirety to divesting specific segments.

Charles Moore, Interim CEO of First Brands Group, framed the move as a strategic inflection point rather than a liquidation.

“Launching the marketing process represents a decisive step toward positioning our brands for long-term stability under new ownership,” Moore said, pointing to what he described as “significant value across the First Brands portfolio” and strong growth potential in the aftermarket sector.

DIP financing and a potential stalking horse bidder

To support operations during the sale, First Brands is also in discussions with an ad hoc group of lenders about securing additional debtor-in-possession (DIP) financing. That same lender group is expected to serve as a stalking horse bidder for certain business segments once agreements are finalized and approved by the bankruptcy court.

If approved, the financing would allow the company to:

• Maintain supply continuity

• Continue servicing customers across core brands

• Avoid operational disruption during the sale process

Stalking horse bids are often used in Chapter 11 cases to set a baseline valuation and encourage competitive bidding—suggesting lenders see underlying value in specific First Brands assets.

Why First Brands remains attractive to buyers

Despite its restructuring, First Brands controls a broad and strategically valuable portfolio in the automotive aftermarket—a sector that continues to benefit from aging vehicle fleets, higher repair costs, and longer vehicle ownership cycles.

The company’s assets include:

• A global lineup of mission-critical auto parts across brakes, filters, spark plugs, wipers, pumps, lighting, towing, and accessories

• Category-leading brands such as FRAM, Raybestos, Trico, Autolite, and Reese, each with deep relationships across retail and commercial channels

• A global manufacturing and distribution footprint supporting both aftermarket and OEM products

• Strong brand recognition within the estimated $410 billion North American automotive aftermarket

Management also highlighted operational and financial improvements implemented during the Chapter 11 process, positioning the business as more efficient and disciplined than before.

For potential buyers—whether strategic acquirers or private equity firms—the combination of durable demand, brand equity, and operational reset could prove compelling.

Industry context: consolidation and selective bets

The automotive aftermarket has been steadily consolidating, as suppliers seek scale, margin resilience, and portfolio breadth. At the same time, investors have become more selective, favoring assets with strong brand loyalty and defensible market positions.

First Brands’ willingness to sell assets individually reflects that reality. Some buyers may be interested in marquee brands like FRAM or Raybestos, while others may target specific product categories or regional operations.

That flexibility could broaden the bidder pool and help drive value—especially if multiple strategic buyers see synergies within different parts of the portfolio.

What happens next

First Brands expects to file a motion with the bankruptcy court seeking authorization to formally conduct the sale and marketing process under Section 363 of the U.S. Bankruptcy Code. That process is designed to deliver the highest or best bid for the company’s assets.

The company said it plans to move quickly, targeting completion of the sale process in the first quarter of 2026, subject to court approval.

Until then, operations are expected to continue as normal, supported by DIP financing and lender backing.

The bigger takeaway

First Brands’ announcement underscores a familiar theme in industrial and manufacturing restructurings: even amid financial distress, strong brands and essential products retain significant value.

For the aftermarket auto industry, the sale could trigger a reshuffling of ownership among some of its best-known names. For First Brands’ stakeholders, the coming months will determine whether that value is best realized under one roof—or several.

Either way, the process marks a pivotal moment for a company whose brands are fixtures in garages, repair shops, and retail shelves across North America.

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