TRW Automotive To Sell Engine Valve Business To Federal-Mogul For $385 Mln

(RTTNews) - Auto parts maker TRW Automotive Holdings Corp. (TRW) said Wednesday that it has agreed to sell its engine valve business to Federal-Mogul Holdings Corp (FDML) for $385 million in cash.

The TRW Engine Components business unit is headquartered in Barsinghausen, Germany. The business operates through a network of joint ventures from 22 facilities in 12 countries and has 5,400 employees worldwide.

The business, which reported sales of $610 million in 2013, will be paired with Federal-Mogul's powertrain business.

John Plant, Chairman and CEO of TRW Automotive said, "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. The engine components business is a long-standing market leader and a trusted partner to the world's vehicle manufacturers."

TRW Automotive expects the sale to close in the first quarter of 2015 and plans to use proceeds from the sale for general corporate purposes.

Livonia, Michigan-based TRW Automotive, through its subsidiaries, operates in 24 countries and employs about 65,000 people worldwide. The company's products include integrated vehicle control and driver assist systems.

TRW is trading at $100.95, up $0.35 or 0.35 percent on a volume of 73,538 shares.

FDML is trading at $16.58, down $0.11 or 0.66 percent on a volume of 1,118 shares.