Federal-Mogul Holdings Corporation announced Jan. 15 that it has terminated its previously announced spin-off of its Motorparts division.
The company will continue to operate in two separate, independent segments with separate CEOs who will each report directly to the board of directors.
The company had announced Sept. 3, 2014 that it planed to separate its Powertrain and Motorparts divisions into two independent, publicly traded companies serving the global OE and aftermarket industries. The planned separation was to be implemented through a tax-free distribution of Federal-Mogul’s Motorparts division to shareholders of Federal-Mogul Holdings Corp., according to Carl Icahn, chairman of the board of Federal-Mogul Holdings Corp.
In the Jan. 15 announcement, the company said that the separate divisions more effectively serve their unique markets and allow each operating segment to more quickly react to its respective market conditions.
Federal-Mogul Motorparts sells and distributes a broad portfolio of products through more than 20 of the world's most recognizable brands in the global vehicle aftermarket, while also serving original equipment manufacturers with braking, chassis and wiper products.
Federal-Mogul Powertrain is a leading global supplier of powertrain components to original equipment manufacturers, designing and manufacturing products and services that enable improved fuel economy, reduced emissions and enhanced vehicle performance.
Subscribe to Aftermarket Business World and receive articles like this every month….absolutely free. Click here.
