FRIEDRICHSCHAFEN, Germany -- ZF Friedrichshafen has bought TRW Automotive, based in Livonia, MI, creating a huge powerhouse in the first-tier automotive supplier world with combined sales of more than C$42 billion and 138,000 employees worldwide. Under the terms of the agreement, ZF will acquire TRW in an all-cash transaction valued at some C$13.6 billion.
ZF and TRW say they're uniquely positioned to benefit from the megatrends of the global automotive industry -- fuel efficiency, increased safety requirements, and autonomous driving. ZF is an important player in driveline and chassis technologies, whereas TRW is a significant supplier of active and passive safety technologies, including advanced driver-assistance systems. Each company plays in both car and truck worlds.
With the acquisition of TRW, ZF will more than double its sales in two of the most significant countries of the world for automotive sales: China and the United States. Combined R&D investments will amount to about C$ 2.1 billion, making ZF a global leader in R&D.
ZF has done business in the U.S. since 1979 and currently operates 12 sites, including a production facility for light-duty automatic transmissions in South Carolina. Through the transaction, ZF will increase its annual sales volume in the U.S. from US$3.9 billion to US$9.0 billion.
The combined group will generate about half of its sales in Europe and half in North America, Asia-Pacific, and the rest of the world.
ZF will remain headquartered in Friedrichshafen. TRW will be integrated into ZF as a separate business division and will remain headquartered in the Detroit area, where ZF's American operation is also based. No decisions about management responsibilities for the TRW business have been made yet
