Emission parts firm Tenneco has acquired Federal Mogul from Icahn Enterprises in a deal valued at $5.4B.
Following the acquisition, Tenneco has also announced its intention to separate the combined businesses into two independent, publicly traded companies through a tax-free spin-off to shareholders; establishing, ‘Aftermarket & Ride Performance Company’ and ‘Powertrain Technology Company’. The agreement is expected to complete in the second half of 2018, subject to regulatory and shareholder approvals with the separation taking place in late 2019.
Brian Kesseler, CEO of Tenneco, said: “Federal-Mogul brings strong brands, products and capabilities that are complementary to Tenneco’s portfolio and in line with our successful growth strategies. Unleashing two new product focused companies with even stronger portfolios will allow them to move faster in executing on their specific growth priorities.”
Carl C. Icahn, Chairman of Icahn Enterprises, added: “Icahn Enterprises acquired majority control of Federal-Mogul in 2008 when we saw an out-of-favor market opportunity for a great company. I am very proud of the business we have built at Federal-Mogul and agree with Tenneco regarding the tremendous value in the business combination and separation into two companies. We expect to be meaningful stockholders of Tenneco going forward and are excited about the prospects for additional value creation,” he concluded.