Automotive parts supplier Federal-Mogul is planning to buy the chassis components business of aftermarket supplier Affinia, which supplies aftermarket customers in the US with both branded and private label chassis parts, Financial terms of the acquisition have not yet been released.
When complete, the newly-combined chassis business will incorporate a wider range of wheel and steering products, and Federal Mogul plans to expand its business to a greater proportion of the US car and truck market, as well as international suppliers.
The deal is the second of its kind this month, with Federal-Mogul having also acquired Honeywell International’s automotive and industrial brake friction business for $155m. It is hoped that both deals will close in the second half of 2014.
“I believe there continue to be attractive opportunities for growth in the global automotive aftermarket,” said Carl Icahn, chairman of the board of Federal-Mogul. “The Board of Federal-Mogul remains committed to pursuing initiatives, like the Affinia chassis transaction and the recently announced Honeywell friction acquisition, to broaden the company’s product offering, provide operational synergies and better serve customers globally.”
Kevin Freeland, co-CEO of Federal-Mogul and CEO of the group’s vehicle components sector, added: “Combining these two businesses will generate synergies in all areas of the business, including greater efficiencies in our chassis manufacturing operations and in logistics. This combination will allow us to better meet the needs of current customers and increase our ability to attract new customers.”
