The German automotive supplier ZF TRW announced that its engineered fasteners and components business will be sold to Illinois Tool Works.
ZF TRW, the Active and Passive Safety Division of the German automotive supplier ZF AG said it has entered into a sale agreement for its engineered fasteners and components (EF&C) business with Illinois Tool Works (ITW) for approximately 450 million dollars. “ZF TRW’s engineered fasteners and components business is a well-known and respected manufacturer of highly-engineered fasteners and components serving leading automotive manufacturers in all major regions, ” said Franz Kleiner, CEO of ZF TRW. “We are fortunate to be selling this business to a highly respected expert in the development and supply of fasteners and components that is seeking to grow their worldwide business.” While the fasteners business is successful and profitable, ZF said it was primarily concentrating on the growth of its core businesses in advanced safety, efficiency, electrification and the further development of automated driving. ITW announced it intended to run the newly bought unit as a standalone division within its automotive OEM segment.
EF&C generated revenues of approximately 470 million dollars in 2015. Headquartered in Germany, the company operates 13 manufacturing facilities globally and employs approximately 3,500 people. Since late 2012, Glenview, Illinois-based ITW, which manufactures a range of products used in the automotive, construction, paper, and food and beverage industries, has been dropping units said to operate in “commoditized markets,” and thus have limited growth prospects. In 2013 and 2014, ITW sold 32 businesses representing 4.90 billion dollars in revenue, according to a company investor presentation from December. The company expects to “exit” businesses worth another 350 million dollars until the end of this year. “The EF&C business will be a highly complementary addition to ITW’s Automotive OEM segment that will broaden our ability to serve our customers and further expand our long-term organic growth potential,” ITW Executive Vice President Sundaram Nagarajan said.
Via Automotive News