Canada's Uni-Select Inc (UNS.TO) said it would sell its U.S. auto parts distribution business to activist investor Carl Icahn's investment company Icahn Enterprises LP (IEP.O) for about $340 million.
Icahn Enterprises said in a regulatory filing that the business acquired from Uni-Select would be operated independently from its auto parts subsidiary Federal-Mogul Holdings Corp (FDML.O).
Carl Icahn will resign as Federal-Mogul's chairman and member of its board before the deal closes. Daniel Ninivaggi, the company's co-chief executive and director, will also step down as a director of Icahn Enterprises.
The deal, expected to close in the first half of 2015, includes nearly all the assets of Uni-Select USA Inc and Beck/Arnley Worldparts Inc, Uni-Select said in a statement.
Uni-Select said it expected to incur an after-tax loss of $80 million-$100 million related to the transaction in the first quarter of 2015.
RBC Capital Markets was Uni-Select's financial adviser for the deal, while McCarthy Tetrault LLP and Barnes & Thornburg LLP were its legal advisers.
Norton Rose Fulbright Canada LLP was Icahn Enterprises' legal counsel.