First Brands to Sell Unit Making Harley Parts for $50 Million

Bankrupt auto parts maker First Brands Group agreed to sell one of its four remaining operating businesses to an affiliate of Active Dynamics Group, which manufactures pollution control systems.

Under the proposal the affiliate, Overdrive Capital, would pay $50 million in cash for First Brands’ Walbro unit, which produces small-engine fuel systems for vehicle makers including Harley Davidson Motor Co. The deal must be approved by the judge overseeing First Brands bankruptcy.

The agreement is First Brands’ first major sale as the company prepares to shed its remaining assets. In January, the company shut down 17 facilities and fired 4,000 ...