Traverse City Record-Eagle
---- — MORRIS TOWNSHIP, N.J. (AP) — Honeywell is selling its friction materials business to Federal Mogul Corp. for about $155 million.
The friction materials unit makes disc brake pads and braking system components for original equipment manufacturers and the aftermarket covering passenger car, light truck, commercial vehicle, railway, and other industrial applications. The deal includes two manufacturing plants in China and Romania.
Honeywell Chairman and CEO Dave Cote said in a statement that the division doesn’t fit with the company’s “core differentiated technologies focus” and its long-term growth plans.
The Morris Township, N.J., company said it will continue to run the Glinde, Germany-based business as usual and has no planned changes in staffing or production through the closing of the deal. The unit has more than 2,000 employees worldwide.
Federal Mogul, based in Southfield, Mich., said that the deal strengthens the manufacturing and engineering technology components of its brake business.
Honeywell International Inc. said Tuesday that the transaction is expected to produce an after-tax loss of about 4 cents per share that will be recorded in 2013’s fourth quarter. The loss is not anticipated to impact the company’s 2014 guidance.
The deal is targeted to close during 2014’s second half.
Honeywell shares were steady at $90.43 in premarket trading about 30 minutes before the market opening. Federal Mogul shares ended at $19.32 on Monday.