Automotive parts maker Tenneco Inc. has renewed a plan to establish its headquarters in suburban Detroit after scrapping the move in 2020.
The Illinois-based powertrain and emissions systems supplier aims to move its C-suite and administrative base to the 100,000-square-foot office in Northville, Mich, that has sat empty since it was constructed for $23 million.
Company spokesman Steve Blow confirmed the plan Monday but said it is contingent on the company's $7.1 billion sale to Apollo Global Management, expected to close in mid-November.
The building can house around 400 employees. Employees will begin moving into the new office after the acquisition closes.
"In Southeast Michigan, we have a large presence, and we'll continue to," Blow said. "Being in the heart of the automotive industry obviously makes sense."
The company has around 3,500 employees in Michigan, spread throughout offices and plants in Southfield, Plymouth Township, Ann Arbor, Lansing, Grass Lake, Marshall, Litchfield, Greenville and Sparta. The company has around 200 employees in Illinois, where it will keep its regional base for its motorparts division.
The company does not plan to consolidate any locations as a result of the new headquarters building, which will house executives, global services, finances and communication functions for the powertrain and emissions systems business. Its aftermarket division will continue to be housed in Southfield.
Tenneco's deal to go private marks the end of a long public run for the auto parts supplier that peaked with the $5.4 billion acquisition of longtime auto supplier Federal-Mogul Corp. and hit a low point shortly after board and investor divisions doomed a plan to split the company in two.
The second time seems like it will be the charm for Apollo, which unsuccessfully bid $4.3 billion for Tenneco's powertrain unit two years ago. The deal this time around includes $1.6 billion in equity, with an enterprise value of $7.1 billion.
The supplier has had plenty of financial ups and downs over the decades and has struggled under the debt load from its Federal-Mogul purchase.
It reported Monday a net loss of $44 million for the third quarter. Revenue was up 14 percent year-over year to $4.9 billion, while adjusted EBITDA increased 8 percent to $301 million.