DETROIT — Tenneco Inc. is buying Federal-Mogul L.L.C. in a deal valued at $5.4 billion, bringing together two of the largest suppliers of aftermarket automotive components.
Once the deal is completed, Tenneco said it plans to realign the companies' respective businesses into two independent, publicly traded companies, one focused on the aftermarket and ride-performance systems and the other on power technology.
Combining Tenneco's Ride Performance business with Federal-Mogul's Motorparts business will establish a global aftermarket leader, Tenneco said, with a portfolio of some of the strongest brands in the aftermarket, such as Monroe, Walker, Wagner, Champion, Fel-Pro and MOOG.
This new company's broader aftermarket product coverage, stronger distribution channels and enhanced channel development will strengthen its position in established and high-growth markets (China and India), Tenneco said, and drive success through new mobility models and capturing evolving e-commerce opportunities.
The aftermarket/ride-control company is expected to generate up to $6.4 billion in annual sales, Tenneco said.
On the OE side, the combination creates a portfolio of braking and advanced suspension technologies and capabilities that set the foundation for meeting changing performance requirements for comfort and safety, Tenneco said, ultimately reinventing the ride of the future with new solutions for ride differentiation and capitalizing on electrification and autonomous driving trends.