Icahn Enterprises to buy remaining 18% of Federal-Mogul Holdings for $9.25 per share
07 September 2016
Activist investor Carl Icahn's investment firm, Icahn Enterprises LP yesterday said that it would buy the remaining 18 per cent that it does not own in auto parts maker Federal-Mogul Holdings Corp for $9.25 per share.
The move to take full control of Federal-Mogul Holdings comes six months after Icahn Enterprises acquired auto parts retailer Pep Boys-Manny Moe & Jack for $1 billion. (See: Icahn wins bidding war for US auto parts retailer Pep Boys after Bridgestone backs off)
Icahn Enterprises, which already owns 82 per cent of Federal-Mogul Holdings, had in February offered to buy the remaining shares for $7 a share, later raising it to $8 in June.
At $9.25 per share, Icahn Enterprises will pay about $282 million for the remaining 18 per cent stake. Federal-Mogul has accepted Icahn Enterprises' latest offer.
The offer for Federal-Mogul represents a premium of 86 per cent to the stock's close on 26 February, the last trading day before Icahn Enterprises made the initial buyout.
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 from Canada's Uni-Select Inc.
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.
Its Motorparts division 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.