TRW Automotive Holdings Corp on Tuesday said its subsidiary, TRW Automotive Inc, has agreed to divest its Linkage and Suspension business to to THK Co Ltd for $400 million in cash, subject to working capital and other adjustments.
The planned divestiture, with annual sales of about $550 million, is expected to close by the end of TRW's fiscal third quarter and is subject to customary conditions, the company said. 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 in September, this agreement represents a great outcome for both TRW and the business," said John Plant, 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."