ZF Friedrichshafen AG has reached agreement to acquire TRW Automotive Holdings Corp. for $12.4 billion in an all-cash transaction. TRW stockholders will receive $ 105.60 in cash for each share of TRW stock, which will be delisted following closing of the sale, which is expected to occur in early 2015.
The combined company will employ more than 138,000 globally with sales of approximately $41 billion.
Livonia, MI-based TRW is a supplier of active and passive safety technologies, mostly in the automotive industry, including advanced driver assistance systems. It has annual sales of approximately $17 billion. ZF offers driveline and chassis technologies and has a significant global presence in the trucking industry. In July, the company showed off advanced safety technologies that it used to develop its “Innovation truck,” autonomous driving vehicle.
“The acquisition of TRW fits perfectly into our long-term strategy. The transaction combines two highly successful companies that have remarkable track records of innovation and growth and solid financial positions. We are strengthening our future prospects by enlarging our product portfolio with acknowledged technologies in the most attractive segments,” said Stefan Sommer, CEO of ZF.
“This is an acquisition in the spirit of a partnership. We look forward to welcoming TRW’s employees to our company and are committed to working closely with them to realize the potential of this exciting combination. The Detroit metro area will remain a major business center for the company, and we expect employees from both companies to benefit from the enhanced career opportunities at a larger, more diversified company,” Sommer added.
ZF will remain headquartered in Friedrichshafen, Germany. TRW will be integrated into ZF as a separate business division, ZF said. No decisions about management responsibilities for the TRW business have been made yet.
“We have long respected ZF as a very successful company in our industry with similar values and focus on innovation. This transaction provides significant benefits for our shareholders who will receive a full and certain value for their shares, as well as for our employees, customers and communities, all of which will reap the benefits of being part of a larger, more diversified global organization. Our employees have shown admirable dedication in growing TRW into the formidable company it is today, and our strong performance is a testament to their hard work,” said John Plant, chairman & CEO of TRW.
