Automotive parts producer Federal-Mogul Holdings Corp. will now apparently be full split into two publicly traded companies.
This will be accomplished through a tax-free distribution of shares in Federal-Mogul’s Motorparts division to shareholders of Federal-Mogul Holdings Corp. This will complete the separation of Federal-Mogul’s Powertrain and Motorparts units.
“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,” said Carl Icahn, chairman of Federal-Mogul Holdings. “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.
“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-capitalized and poised for stand-alone success,” he said.
Federal-Mogul 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 global supplier of powertrain components to OEMs.
