German Transmission mfer ZF has completed its purchase of TRW

"mr_gofast" (jake_berenshteyn) 09/15/2014 at 11:09 • Filed to: ZF, TRW AUTOMOTIVE, DISCUSSION

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German car parts maker ZF Friedrichshafen [ZFF.UL] has reached a deal to buy U.S.-based TRW Automotive Holdings Corp ( !!!error: Indecipherable SUB-paragraph formatting!!! ) for $13.5 billion including debt, creating a global automotive supply powerhouse with combined annual sales of more than $40 billion.

The transaction would more than double ZF's sales in two of the world's largest car markets: China and the United States, and marry ZF, a major provider of steering systems and powertrains, with a leading maker of automotive safety products such as brakes and air bags.

ZF is offering $105.60 in cash for each TRW share, or nearly $12 billion based on shares outstanding. That is a premium of 16 percent over the U.S. company's closing price on July 9, before news of ZF's buyout interest emerged..

TRW, based in Livonia, Michigan, is a global maker of air bags, electronics, and braking and steering equipment for cars. It sells to nearly all major automakers, including Ford Motor Co ( !!!error: Indecipherable SUB-paragraph formatting!!! ) and General Motors Co ( !!!error: Indecipherable SUB-paragraph formatting!!! )

The company, which had sales of $17.43 billion last year, counts Volkswagen AG ( !!!error: Indecipherable SUB-paragraph formatting!!! ) as its largest customer and derives about 40 percent of its revenue from Europe.

Privately owned ZF Friedrichshafen, which supplies chassis components to companies including Audi AG ( !!!error: Indecipherable SUB-paragraph formatting!!! ) and BMW ( !!!error: Indecipherable SUB-paragraph formatting!!! ), generates about half its revenue in Europe. It posted 2013 revenue of 16.84 billion euros ($21.7 billion).

ZF, which already helps carmakers develop hybrid-powered drivetrains, has been on the lookout for a strategic partner after an analysis showed them that semi-autonomous driving functions and vehicle connectivity will develop into important new business areas.

Buying TRW is an attempt by ZF to increase its exposure to sensors and electronic components. Stricter safety and anti-pollution rules have forced carmakers to install more complex onboard electronics that help to make acceleration, braking and engine management systems more intelligent.

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K-Roll-PorscheTamer > mr_gofast 09/15/2014 at 11:12

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That's neat; I was thinking of applying at TRW in the future for internship.

Sweet Trav > K-Roll-PorscheTamer 09/15/2014 at 11:15

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Talk to me when you're looking for an internship...

K-Roll-PorscheTamer > Sweet Trav 09/15/2014 at 11:18

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You work for TRW? :)

One of the reasons I was thinking TRW is because my mother has many friends that work there that are somewhat high up I think.

Sweet Trav > K-Roll-PorscheTamer 09/15/2014 at 11:19

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Not TRW another supplier in Metro Detroit.

K-Roll-PorscheTamer > Sweet Trav 09/15/2014 at 11:23

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Ah I see. Which, if you don't mind my asking?

Sweet Trav > K-Roll-PorscheTamer 09/15/2014 at 11:25

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A rather large Japanese supplier. I'd rather not disclose the exact company, but given that its Japanese and My s/n has to do with bearings a bright person like you ought to put two and two together. ;)

K-Roll-PorscheTamer > Sweet Trav 09/15/2014 at 11:28

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I feel like I should know this, don't tell me. But what's s/n?

Sweet Trav > K-Roll-PorscheTamer 09/15/2014 at 11:29

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screen name, display name etc.

K-Roll-PorscheTamer > Sweet Trav 09/15/2014 at 11:35

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That's what I thought it was. I don't think I can figure it out, but if you said it, I'd say "I knew it!!". Are you familiar with BDI? My dad used to work for them and was manager of their branch in Madison Heights for a while.

Sweet Trav > K-Roll-PorscheTamer 09/15/2014 at 11:36

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I'm quite familiar with BDI. If you make it to the meetup im trying to put together, ill have no problem disclosing there, just dont want to blab it all over the interwebs.

K-Roll-PorscheTamer > Sweet Trav 09/15/2014 at 11:37

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That's awesome! I'm not sure if that also works as another hint or not..

treesmakewater > mr_gofast 09/15/2014 at 11:55

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Me and ZF have a love hate relationship. They make some damn good transmissions, but they normally are the first non-electronic thing to go in the cars they are used in.