HOUSTON-Tenneco Inc.'s automotive subsidiary has reached an agreement in principle to sell its Tenneco Brake division, the company said June 27. James E. Bennett Jr. of Charleston, S.C., who worked for a decade in the brake operations of Raybestos Products Co., and with the Bendix Automotive Group, will purchase the division for an undisclosed amount. Tenneco said the transaction is expected to close in the third quarter.
Tenneco Automotive's brake division, formed in 1989 and based in Lincolnshire, Ill., manufactures asbestos-free brake friction products for the automotive and heavy duty markets, and sells a broad line of brake components and accessories. Revenues for 1993 were $54 million. It operates plants in Cartersville, Ga., and Concord, Ontario, and employs about 500.
Richard A. Snell, Tenneco Automotive president and CEO, called the company's sale of the brake unit a redeployment of its assets ``to enhance shareowner value.''
``We have decided to direct our capital resources and management talent to expanding our other operations,'' he said.
Tenneco Automotive's other divisions are Monroe Auto Equipment, which makes shock absorbers and struts, and Walker Manufacturing, which produces mufflers and exhaust systems. Tenneco said both are billion-dollar market leaders in North America, Europe and Australia.
The new corporation that will acquire Tenneco Brake has not yet been named, but its headquarters will be at the Cartersville plant.