Livonia-based TRW Automotive Holdings Corp. announced today it plans to sell its engine valve business to Southfield-based Federal-Mogul Holdings Corp. for $385 million.
“The engine components business is a long-standing market leader and a trusted partner to the world’s vehicle manufacturers,” says John C. Plant, chairman and CEO of TRW Automotive. “Its pairing with Federal-Mogul’s powertrain business will further strengthen its position as an industry leader.”
Headquartered in Barsinghausen, Germany, the TRW Engine Components business unit secured $610 million in sales last year. Overall, TRW Automotive and its subsidiaries — which operate in 24 countries and employ approximately 65,000 people worldwide — saw sales of $17.4 billion in 2013.
“In addition to clarifying (TRW’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,” Plant says.
The company’s current products include integrated vehicle control and driver assist systems, braking systems, steering systems, suspension systems, seat belts and airbags, electronics, engine components, fastening systems, and aftermarket replacement parts and services.
The planned divestiture is expected to close in the first quarter of 2015. Proceeds from the sale will be used for general corporate purposes.