Federal-Mogul Corporation’s European subsidiaries agreed to buy parts of the Honeywell Friction Material business, notably two manufacturing plants, in China and Romania. The value of the purchase is not known. Both parties in the agreement expect the sale to close in the second half of this year.
"This acquisition accelerates Federal-Mogul's long-term strategy to strengthen its core product lines, including its global friction portfolio for both original equipment and aftermarket customers,” stated company chairman Carl. C. Icahn. “We believe this transaction will generate significant synergies which will create substantial value for all stakeholders."
The new purchase follows one announced in early December, in which Federal-Mogul bought DVZ Bearings, a Russian manufacturer of components for commercial vehicle and industrial engine OEMs.
Honeywell Friction Materials is headquartered in Germany is one of two parts of the Honeywell Transportation Systems business unit of Honeywell International. It supplies automotive brake friction materials, including disc brake pads, drum brake linings, and aftermarket brake products marketed under the Bendix and Jurid brands.
The business has over 2,000 employees worldwide.
"Honeywell's recognized braking technology and its restructured manufacturing footprint make the acquisition a solid addition to our existing global friction business," according to Kevin Freeland, CEO of Federal-Mogul Vehicle Components. "We expect to combine the Federal-Mogul and Honeywell brake businesses to realize significant synergies in all elements of the business. Our customers in all segments and regions will benefit from the transaction as we will be able to provide them with the best of both companies."
The buyer said the additional operations would “substantially strengthen the manufacturing and engineering technology footprint of Federal-Mogul's brake platform,” bringing more manufacturing capacity and capability. No further details on that point were announced.
Federal-Mogul already supplies an extensive line of automotive and heavy-duty brake parts for OEMs and aftermarket suppliers, including low- and zero-copper brake formulations. Its aftermarket brands include Wagner, Ferodo, and Necto brake friction products.