By Dustin Walsh, Crain News Service
SOUTHFIELD, Mich. (Jan. 24, 2014) — Diversified auto parts supplier Federal-Mogul Corp. has agreed to acquire the chassis components business of Affinia Group Inc.
Terms of the transaction were not disclosed and the deal is subject to regulatory approvals, Federal-Mogul said Jan. 22. The business unit makes steering, suspension and driveline components; 2012 sales were $194 million, according to Affinia.
Southfield-based Federal-Mogul will take control of Affinia's global chassis operations in the U.S. and Canada, but specific locations are yet to be finalized, Federal-Mogul spokesman Jim Burke said in an e-mail. The Affinia chassis components business is based in McHenry, Ill.
The transaction will include around 350 Affinia employees, Mr. Burke said.
Affinia CEO Terry McCormack said the Ann Arbor, Mich.-based company will use the proceeds of the sale to pay down debt.
The deal marks the second acquisition for Federal-Mogul this month. The company produces various powertrain components for auto makers and also numerous brand-named aftermarket parts such as Champion spark plugs and ANCO wiper blades.
On Jan. 8, Federal-Mogul announced the acquisition of the automotive and industrial brake friction business of Morristown, N.J.-based Honeywell International Inc. for $155 million. The Germany-based unit employs 2,000 worldwide with plants in China and Romania.
The brake business supplies pads and components to auto makers and the aftermarket.
Both deals are expected to close in the second half of 2014.
The Carl Icahn-controlled company finished the third quarter of 2013, ending Sept. 30, with a net income of $38 million on revenue of $1.69 billion.
Federal-Mogul ranks No. 50 on the list of the top 100 global suppliers compiled by Automotive News, a Detroit-based sister publication of Tire Business, with estimated worldwide sales to auto makers of $4.3 billion in 2012.
This report appeared in Crain's Detroit Business magazine, a sister publication of Tire Business.