Federal-Mogul Powertrain and TRW reported they have completed “material portions” of the latter company’s sale of the TRW engine valve business to Federal-Mogul, a deal announced in September 2014 and reported then to be valued at $385 million. The two companies did not announce the final terms of the deal.
TRW noted the sale closing did not include TRW's joint ventures involved in the business, except for one joint venture in Venezuela.
The business develops and manufactures engine valves for passenger car engines, heavy-duty engines and large-bore industrial and marine engines. The business is headquartered in Barsinghausen, Germany, and operates in 12 countries, with nearly 4,000 employees worldwide.
John C. Plant, chairman and CEO of TRW Automotive, stated the sale is “evidence of TRW's commitment and focus to its safety portfolio as the company continues to invest in engineering development and its global manufacturing footprint for both active and passive safety systems."
"We are extremely excited about this strategic acquisition, as it adds a completely new product line that is very complementary to Federal-Mogul Powertrain's portfolio,” stated CEO Rainer Jueckstock of Federal-Mogul Powertrain. “This engine valve business enables us to provide more value to our customers who look to us to help them improve fuel economy, reduce emissions, and enhance vehicle performance on a global basis."
Last fall, Federal-Mogul Holdings split its Powertrain and Motorparts divisions, spinning off the Motorparts division to shareholders, resulting in two independent, publicly-traded companies. Federal-Mogul Powertrain designs and manufactures powertrain components it supplies to original equipment manufacturers, including pistons, piston rings, cylinder liners, valve seats, valve guides, bearings, spark plugs, and more. The organization operates in North America, Europe, and China, with more than 70 plants and 12 engineering centers.
Also last fall, TRW Automotive Holdings agreed to a takeover by ZF Friedrichshafen AG in a deal reportedly worth about $11.7 billion.