Active Dynamics to Acquire Walbro Business from First Brands for $50 Million

First Brands, a bankrupt U.S. auto parts manufacturer, has reached an agreement to sell its Walbro business line to Canada-based Active Dynamics Group for $50 million. The transaction, which includes the Carter Carburetor brand, is part of First Brands' broader effort to monetize assets to support its bankruptcy process and address fraud claims. The sale is expected to preserve approximately 600 jobs in Michigan, Arizona, and Los Mochis, Mexico. First Brands is pursuing additional asset sales, while some units were previously closed without being sold.

Key Points

First Brands agreed to sell its Walbro business line to Active Dynamics Group for $50 million.
The transaction includes the Carter Carburetor brand and is expected to preserve about 600 jobs in Michigan, Arizona, and Los Mochis, Mexico.
The sale forms part of First Brands' effort to raise funds through asset sales during its bankruptcy restructuring; other assets, including towing company Horizon, are also being shopped while some units were previously closed without sale.

First Brands, a U.S. auto parts company that has entered bankruptcy proceedings, confirmed it will sell its Walbro business line to Active Dynamics Group, a Canada-headquartered buyer, for a purchase price of $50 million. The company said the transaction is intended to support its ongoing bankruptcy restructuring and to help address outstanding fraud claims.

The deal encompasses the Walbro product line and the Carter Carburetor brand. Walbro's manufacturing portfolio includes small engine fuel systems, carburetors, fuel pumps, ignition systems, and related parts. First Brands said the sale will maintain around 600 positions across facilities in Michigan, Arizona, and Los Mochis, Mexico.

Company officials indicated the divestiture is one element of a wider program to sell non-core business units as part of the reorganization process. First Brands is actively marketing other assets, among them a towing business operating under the name Horizon.

At the same time, First Brands has previously ceased operations at several units without securing buyers. Those closures included the Brake Parts, Cardone, and Autolite divisions, which were shut down rather than sold.

First Brands filed for bankruptcy in September 2025. The sale of the Walbro business to Active Dynamics is a step in the company's effort to raise proceeds through asset sales as it addresses restructuring needs and claims arising in the bankruptcy case.

The transaction preserves manufacturing capacity and jobs tied to Walbro's small-engine components, while signaling continued activity by First Brands to divest additional assets. Information on closing conditions or the timetable for finalizing the Walbro sale was not provided in the statements released by the company.

Context and implications

This sale transfers ownership of an established small-engine parts business and its brand to Active Dynamics. First Brands continues to pursue a mix of sales and shutdowns as it navigates its bankruptcy process and related legal claims.

Risks

Ongoing bankruptcy and fraud claims create uncertainty about the timing and ultimate proceeds from further asset sales - impacts corporate creditors and suppliers.
Previous closures of Brake Parts, Cardone, and Autolite units indicate that not all business lines will find buyers, posing risks to employees and regional manufacturing activity in the auto parts sector.
No timetable or closing conditions were disclosed for the Walbro sale, leaving uncertainty about when proceeds will be realized and how they will affect the restructuring process.

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