American company Honeywell recently agreed to sell its Friction Materials division to Federal-Mogul, and the deal also includes the factory it owns in Romania, at Ploiesti. The transaction, estimated at some USD 155 million, will most likely be closed in the second half of 2014.

The seller expects the deal to cause a fiscal loss of some USD 0.04 per share, which will be included in the fourth quarter financial report for 2013, but the loss will not affect the company's overall financials for the fourth quarter, nor for 2014.

Honeywell Friction Materials manufactures break pads and components for braking systems for cars, trains and industrial applications.

Honeywell will continue its activities for the sold division as usual, and has no plans to implement changes at staffing or production levels until the deal is closed. The acquired production includes two recent units in China and Romania.

“Smart investment decisions over the past few years have significantly improved the competitive position of Friction Materials faster than we originally planned,” said Honeywell Chairman and Chief Executive Officer Dave Cote.

“While the business is much stronger today, it does not fit with Honeywell’s core differentiated technologies focus and long-term growth plans. Federal Mogul’s strong automotive components business is a better strategic fit for Friction Materials’ continued growth over the long-term," he concluded.

Buyer Federal-Mogul Corporation is an American international automotive supplier headquartered in Southfield, Michigan. The company sells brake friction product lines in the global automotive aftermarket. The company employs 44,500 people in 34 countries.

editor@romania-insider.com