ZF Friedrichshafen agrees to buy TRW for $12.4 billion cash

Article by Christian A., on September 17, 2014

ZF Friedrichshafen has inked an agreement to acquire TRW Automotive Holdings for $105.60 per share, paving way for the creation of second-largest auto supplier in the world. The companies have a pro forma combined revenue of around EUR30 billion ($41 billion) and 138,000 employees. Under the terms of the agreement, ZF will acquire TRW for around $12.4 billion in an all-cash transaction.

TRW said in a press release that ZF would purchase all of its outstanding shares in an agreement worth $13.5 billion on an enterprise value basis. ZF is offering to acquire the share at a price higher than TRW’s closing price on July 9. The price is also almost eightfold of TRW's earnings before interest, tax, depreciation and amortization for the year ended June 2014.

The agreement is expected to be finalized by the first quarter of 2015. It should also first receive a go-signal from TRW’s shareholders at a special meeting. TRW said in a statement that the combined company will be well-positioned to take advantage of on “favorable megatrends” in the auto industry by bringing together complementary product offerings and leading technology positions.

Once the acquisition is completed, TRW will work as a separate business division within ZF. TRW chief executive John Plant said in a statement that ZF’s acquisition of his company provides significant benefits for TRW shareholders who are bound to get full and certain value for their shares.

He added that TRW’s employees, customers and communities will also benefit from the transaction as they will become part of a larger, more diversified global organization.

Topics: zf, trw

If you liked the article, share on:

Comments

Recommended

Amid reports that major rival Volkswagen would cease producing 2016 and 2017 model year diesel cars following the wake of the "Dieselgate" scandal, it’s believed that Chevrolet sees its opportunity...
by - May 22, 2017
Honda recently whips out a new feature for the S660 Bruno Leather Edition. Any guesses? Well, it’s going to be an iPhone app that goes by the name Rev Beat....
by - May 22, 2017
And so it goes, Ford is not at all closing its doors to an all-electric F-150 pickup. The American manufacturer initially laid out its plans for an F-150 hybrid earlier...
by - May 22, 2017
As it is now, Nissan Motor’s Nismo road car operations is a relatively a small business, with an annual volume of 15,000 performance-oriented cars. However, Nissan is giving Nismo fans...
by - May 21, 2017
The refreshed 2018 Acura TLX will be hitting the showrooms next month with a starting price of $33,000 for the TLX 2.4L and $36,200 for the V6. Coming out with...
by - May 21, 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