Federal-Mogul Holdings Corporation (NASDAQ: FDML), headquartered in Southfield, Michigan, USA, has announced plans to separate its Powertrain and Motorparts divisions into two independent, publicly-traded companies serving the global original equipment and aftermarket industries.
“By separating the Powertrain and Motorparts divisions of Federal-Mogul we are creating two independent, market-leading companies that will be among the largest and strongest in their respective peer groups globally. Upon separation, the newly formed Federal-Mogul Motorparts will have a strong balance sheet with access to large amounts of capital enabling it to pursue synergistic acquisitions in the highly fragmented aftermarket industry,” stated Carl Icahn, Chairman of the Board of Federal-Mogul Holdings Corporation.
“In addition, the remaining Federal-Mogul Powertrain business will benefit from enhanced management focus and the allocation of resources more directly aligned with its strategic priorities. Upon separation both businesses will be well-capitalised and poised for stand-alone success,” added Icahn.
Federal-Mogul Motorparts sells and distributes a broad portfolio of products through more than 20 of the world’s most recognisable brands in the global vehicle aftermarket, while also serving original equipment manufacturers with braking, chassis and wiper products. Motorparts’ aftermarket brands include ANCO® wiper blades; Champion® spark plugs, wipers and filters; AE®, Fel-Pro®, FP Diesel®, Goetze®, Glyco®, Nüral®, Payen® and Sealed Power® engine products; MOOG® steering and suspension parts; and Ferodo®, Jurid® and Wagner® brake products.
Federal-Mogul Powertrain is a leading global supplier of powertrain components to original equipment manufacturers, designing and manufacturing products and services that enable improved fuel economy, reduced emissions and enhanced vehicle performance.
“The Powertrain division, focused on providing our customers with the technologies they need to meet today’s and tomorrow’s challenges, will continue to grow organically based upon our superior offerings. We will also pursue market opportunities to expand our scope, size and footprint, focusing on core components for combustion engines that offer a strong strategic fit with our existing portfolio,” stated Rainer Jueckstock, Co-CEO, Federal-Mogul Holdings Corporation and CEO, Powertrain.
Completion of the transaction is subject to customary conditions, however the company’s objective is to complete the spin-off of Federal-Mogul Motorparts in the first half of 2015.