Federal-Mogul Corp. announced that its European subsidiaries have entered into a definitive purchase agreement to acquire certain business assets of the Honeywell automotive and industrial brake friction business including two recently established manufacturing facilities in China and Romania.
The Honeywell Friction Materials business unit of Honeywell International Inc. is headquartered in Glinde, Germany, and employs over 2,000 globally. The transaction is subject to customary approvals from regulatory authorities and other stakeholders where required. The parties anticipate closing the transaction during the second half of 2014.
"This acquisition accelerates Federal-Mogul's long-term strategy to strengthen its core product lines, including its global friction portfolio for both original equipment and aftermarket customers," said Carl Icahn, Federal-Mogul's board chairman. "We believe this transaction will generate significant synergies which will create substantial value for all stakeholders."
"Honeywell's recognized braking technology and its restructured manufacturing footprint make the acquisition a solid addition to our existing global friction business," stated Kevin Freeland, CEO, Federal-Mogul Vehicle Components.
"We expect to combine the Federal-Mogul and Honeywell brake businesses to realize significant synergies in all elements of the business. Our customers in all segments and regions will benefit from the transaction as we will be able to provide them with the best of both companies."
Federal-Mogul says the Honeywell business will substantially strengthen the manufacturing and engineering technology footprint of its brake platform with enhanced manufacturing capacity and capability. The combined business will better serve global customers, both OE and aftermarket, with cost-competitive and leading-edge solutions.
