Tenneco Inc. has announced it has completed its acquisition of Federal-Mogul LLC, a leading global supplier to original equipment manufacturers and the aftermarket.
“Today marks an important step for Tenneco as we progress toward the transformation of our company into two strong, leading global businesses with the scale and financial flexibility to drive long-term value creation,” said Brian Kesseler, co-CEO, Tenneco.
Tenneco stated that the transformational acquisition—expected to be complete late 2019—accelerates long-term value creation by creating two product-focused, purpose-built industry leaders in their respective markets with greater scale, and strategic and financial flexibility. The closing precedes the planned separation of the combined businesses into two independent, publicly traded companies through a tax-free spin-off to shareholders establishing an Aftermarket and Ride Performance company and a Powertrain Technology company.
“This transaction makes possible the ability to create two new product-focused companies with even stronger portfolios positioned to capture unique opportunities in their respective markets,” said Roger Wood, co-CEO, Tenneco. “We look forward to accelerating the successful realignment of the businesses and creation of the new companies.”
Future Aftermarket & Ride Performance
The aftermarket and ride performance company will be one of the largest global multi-line, multi-brand aftermarket companies, plus one of the largest global OE ride performance and braking companies. The company’s principal product brands will feature Monroe, Walker, Clevite Elastomers, MOOG, Fel-Pro, Wagner, Champion and others.
Future Powertrain Technology Company
The powertrain technology company will be one of the world’s largest pure-play powertrain companies serving OE markets worldwide with engineered solutions addressing fuel economy, power output, and criteria pollution requirements for gasoline, diesel and electrified powertrains. The powertrain technology company would serve light vehicle, commercial truck, off-highway and industrial markets.
