TRW Automotive Holdings Corp., today announced that its subsidiary, TRW Automotive Inc., has signed a definitive agreement to divest its Linkage and Suspension business for US$400m in cash, subject to working capital and other adjustments, to THK Co., LTD. The planned divestiture, with annual sales of approximately US$550m, is expected to close by the end of TRW’s fiscal third quarter and is subject to customary conditions, including regulatory approvals. Proceeds from the sale will be used for general corporate purposes.
“In addition to resolving the company’s overlap position relating to TRW’s pending acquisition by ZF Friedrichshafen AG announced on September 15, 2014, this agreement represents a great outcome for both TRW and the business,” said John C. Plant, chairman and CEO of TRW Automotive. “TRW’s Linkage and Suspension business is a long-standing market leader and a trusted partner to the world’s vehicle manufacturers. Its pairing with THK’s business will further strengthen its position as an industry leader.”