Federal-Mogul to acquire chassis components business
Diversified auto parts supplier Federal-Mogul Corp. said it agreed to acquire the chassis components business of Affinia Group Inc.
Terms of the transaction were not disclosed and the deal is subject to regulatory approvals, Federal-Mogul said in a statement today.
Federal-Mogul will take control of Affinia’s global chassis operations based in McHenry, Ill., in the U.S. and Canada, but specific locations are yet to be finalized, Federal-Mogul spokesman Jim Burke said in an e-mail.
The transaction will include around 350 Affinia employees, Burke said.
Affinia CEO Terry McCormack said the Ann Arbor, Mich.-based company will use the proceeds of the sale to pay down debt.
The deal marks the second acquisition for the Federal-Mogul this month. The company produces various powertrain components for automakers and also numerous brand-named aftermarket parts such as Champion spark plugs and ANCO wiper blades.
On Jan. 8, the suburban Detroit supplier announced the acquisition of Morristown, N.J.-based Honeywell International Inc.’s automotive and industrial brake friction business for $155 million. The Germany-based unit employs 2,000 worldwide with plants in China and Romania.
The brake business supplies pads and components to automakers and the aftermarket.
Both deals are expected to close in the second half of 2014.
The Carl Icahn-controlled company finished the third quarter of 2013, ending Sept. 30, with a net income of $38 million on revenue of $1.69 billion.
Federal-Mogul ranks No. 50 on the Automotive News list of the top 100 global suppliers with estimated worldwide sales to automakers of $4.3 billion in 2012.
You can reach Dustin Walsh at firstname.lastname@example.org.