Federal-Mogul to buy Honeywell’s brake friction division for $155 million

Article by Christian A., on January 9, 2014

Federal-Mogul Corp. has reached an agreement to acquire the automotive and industrial brake friction business of Honeywell International Inc. for around $155 million. Federal-Mogul will also take control of Honeywell site in China and Romania. The friction materials business, based in Glinde, Germany, is expected to operate with no planned staffing changes or interruption in production while the agreement is finalized, Honeywell said in a statement.

The business employs over 2,000 people around the world. According to Honeywell, the agreement might result to an after-tax loss of 4 cents per share that will be recorded in the fourth quarter of 2013, but would not affect its financial outlook for 2014.

The agreement, which is expected to be completed in the second half of 2014, has caused Federal-Mogul shares to rise. Federal-Mogul is No. 50 on the Automotive News list of the top 100 global suppliers, with an estimated $4.3 billion in sales to carmakers in 2012.

The Carl Icahn-controlled supplier has operations in countries. Honeywell, meanwhile, is No. 60 on the Automotive News list of the top 100 global suppliers, with global parts sales of $3.08 billion in 2012.

If you liked the article, share on:

Comments

Recommended

J.D. Power has officially released the 2017 Vehicle Dependability Study, an annual list of the most dependable brands in the auto industry. Once again coming on top is Lexus, the...
by - February 26, 2017
Citroen revealed that its entry to the Chinese market is moving forward with the planned release of the new generation C5. While still on sale on this part of the...
by - February 26, 2017
There is definitely a second-generation Super Series from McLaren. Even in camouflaged form, it is simply incredible. But while we still don’t have the full data on how truly dynamic...
by - February 25, 2017
A lot of fans are excited with the news that Porsche could be unveiling a performance version of its Panamera 4 E-Hybrid plug-in hybrid during the 2017 Geneva Auto Show. ...
by - February 25, 2017
Tesla is finally setting a more “definite” schedule with regards to the official launch of the Tesla Model 3 electric car. A “limited production” is said to be slated to...
by - February 25, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries