TRW Automotive has agreed to sell its linkage and suspension business to THK for $400m in an all-cash deal.
The linkage and suspension business generates revenues of $550m.
Subject to customary conditions including regulatory approvals, the transaction is expected to be concluded by the end of TRW's fiscal third quarter.
TRW Automotive chairman and CEO John Plant said: "TRW's Linkage and Suspension business is a long-standing market leader and a trusted partner to the world's vehicle manufacturers.
"Its pairing with THK's business will further strengthen its position as an industry leader."
BNP Paribas provided financial advisory services to TRW, while Honigman Miller Schwartz and Cohn LLP provided legal advisory services.
In September 2014, ZF Friedrichshafen signed a definitive agreement to acquire TRW Automotive for $13.5bn.
TRW Automotive offers integrated vehicle control and driver assist systems, braking systems, steering systems, suspension systems, occupant safety systems, electronics, fastening systems and aftermarket replacement parts and services.
