TRW Automotive Holdings has signed a definitive agreement to divest its engine valve business for USD 385M in cash to Federal-Mogul Holdings Corporation. The planned divestiture, with annual sales of approximately USD 610M, is expected to close in the first quarter of 201. Proceeds from the sale will be used for general corporate purposes.
“In addition to clarifying the company’s product portfolio, the planned sale of the engine components business to Federal-Mogul will enable the company to concentrate on its growing active and passive safety technologies”, said John C. Plant, chairperson and CEO of TRW Automotive. “The engine components business is a long-standing market leader and a trusted partner to the world’s vehicle manufacturers. Its pairing with Federal-Mogul’s powertrain business will further strengthen its position as an industry leader.”