TRW Automotive Holdings Corp. (NYSE: TRW) today announced it has signed a definitive agreement to divest its engine valve business for $385 million in cash to Federal-Mogul Holdings Corporation (NASDAQ: FDML). The planned divestiture, with annual sales of approximately $610 million, is expected to close in the first quarter of 2015 subject to customary conditions, including regulatory, regional Supervisory Board and local works council approvals. 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,” saidJohn C. Plant, Chairman 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.”
