US: TRW signs suspension and linkage divestment deal
TRW Automotive Holdings says its TRW Automotive subsidiary has inked a definitive agreement to divest its linkage and suspension business for US$400m in cash, subject to working capital and other adjustments, to THK.
The planned divestiture, with annual sales of around US$550m is expected to close by the end of TRW's fiscal third quarter and is subject to customary conditions, including regulatory approvals.
Proceeds from the sale will be used for general corporate purposes.
"In addition to resolving the company's overlap position relating to TRW's pending acquisition by ZF Friedrichshafen announced on 15 September, 2014, this agreement represents a great outcome for both TRW and the business," said TRW Automotive chairman and CEO, John Plant.
"TRW's linkage and suspension business is a long-standing market leader and a trusted partner to the world's vehicle manufacturers. Its pairing with THK's business will further strengthen its position as an industry leader."
BNP Paribas acted as exclusive financial advisor to TRW, and Honigman Miller Schwartz and Cohn acted as TRW's legal advisers.