USA: Bankruptcy court clears Federal-Mogul facility sales to Decoma International
Federal-Mogul Corporation has received bankruptcy court approval authorizing the sale of its original equipment automotive lighting operations in Matamoros, Mexico, a distribution centre in Brownsville, Texas, an assembly operation in Toledo, Ohio, and certain of the contracts and equipment at its original equipment automotive lighting operations in Hampton, Virginia, to Decoma International.
The total purchase price is $US2.25 million plus an amount to be determined for inventory. The OE lighting facilities to be acquired from by Decoma have more than 400 employees and produce primarily forward lighting modules for cars and light trucks. This acquisition is scheduled to close on April 14, 2003 with a transition of the Hampton, Virginia assets to occur subsequent to April 14, 2003.
The transaction is expected to generate approximately US$55 million of sales on an annualised basis which will increase Decoma's North American average annualised content per vehicle by approximately US$3.