Federal-Mogul says its European subsidiaries have entered into a definitive purchase agreement to acquire certain business assets of the Honeywell automotive and industrial brake friction operation, including two recently established manufacturing facilities in China and Romania.
Honeywell Friction Material business is headquartered in Glinde, Germany and employs more than 2,000 associates globally.
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The transaction is subject to customary approvals from regulatory authorities and other stakeholders where required. The parties anticipate closing the transaction during the second half of 2014.
“This acquisition accelerates Federal-Mogul’s long-term strategy to strengthen its core product lines, including its global friction portfolio for both original equipment and aftermarket customers,” said Federal-Mogul chairman, Carl Icahn.
“We believe this transaction will generate significant synergies which will create substantial value for all stakeholders.”
For his part, Federal-Mogul vehicle components CEO, Kevin Freeland, said: “Honeywell’s recognised braking technology and its restructured manufacturing footprint make the acquisition a solid addition to our existing global friction business.
“We expect to combine the Federal-Mogul and Honeywell brake businesses to realize significant synergies in all elements of the business.”
