LIVONIA, Mich. – TRW Automotive Holdings Corp. (TRW) today announced that its subsidiary, TRW Automotive Inc., signed a definitive agreement to divest its Linkage and Suspension business for $400 million in cash, subject to working capital and other adjustments, to THK Co. LTD.
Divestiture of the business, which has annual sales of approximately $550 million, 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 AG announced on Sept. 15, 2014, this agreement represents a great outcome for both TRW and the business,” said John Plant, chairman and CEO of TRW Automotive. “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 adviser to TRW, and Honigman Miller Schwartz and Cohn LLP acted as TRW’s legal advisers.
