Carl Icahn to buy rest of auto parts maker Federal-Mogul Holdings for about $213 mn
01 March 2016
Activist investor Carl Icahn's investment company yesterday said that it will buy the 18 per cent that it does not already own of auto parts maker Federal-Mogul Holdings Corp for about $213 million, as it focuses on growing its auto business.
Icahn Enterprises LP, which already owns 82 per cent of Federal-Mogul Holdings, offered to buy the remaining shares for $7 a share, a 41-per cent premium to Friday's closing price.
The move comes a few months after Icahn Enterprises struck deal to buy auto parts and maintenance retail chain Pep Boys - Manny Moe & Jack for $1 billion. (See: Icahn wins bidding war for US auto parts retailer Pep Boys after Bridgestone backs off)
Pep Boys' retail auto parts business and Federal-Mogul Holdings will be a perfect fit for Auto Plus, an auto spare parts company that Icahn Enterprises bought in June last year.
Icahn Enterprises had acquired Auto Plus from Canada's Uni-Select Inc.
The Federal-Mogul Holdings deal is subject to approval by a special committee of independent directors of the auto parts maker and also by an informed vote of majority shareholders who are not affiliated with Icahn Enterprises.
Federal-Mogul is a global supplier of products and services to the world's manufacturers and servicers of vehicles and equipment in the automotive, light, medium and heavy-duty commercial, marine, rail, aerospace, power generation and industrial markets.
The Michigan-based company operates two independent business divisions, Powertrain and Motorparts.
Federal-Mogul Powertrain designs and manufactures original equipment powertrain components and systems protection products for automotive, heavy-duty, industrial and transport applications.
Federal-Mogul Motorparts sells and distributes braking, chassis, wipers and other vehicle components to more than 20 of the world's most recognised brands in the global vehicle aftermarket and also original equipment vehicle manufacturers.