ZF to acquire TRW Automotive after deal agreed

Automotive safety systems supplier TRW Automotive will become a separate business division within ZF Friedrichshafen after the two companies agreed struck a deal under which ZF will acquire all outstanding shares in TRW for US$105.60 per share in an all-cash transaction valued at US$13.5bn on an enterprise value basis.

The acquisition price represents a premium of approximately 16% and 15% over TRW’s undisturbed closing stock price of US$91.40 on 9 July and all-time undisturbed high price of US$91.62 on 7 July, respectively, and a 7.6x multiple of TRW’s adjusted EBITDA for the 12 months ended 27 June.

The agreement has been unanimously approved by TRW’s board of directors and the supervisory board and management board of ZF, a privately owned German supplier of driveline and chassis technology best known for its widely used ZF transmissions.

The transaction will create a major automotive supplier business with pro forma combined sales of around €30bn (US$41bn) and 138,000 employees.

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Posted by Geoff Fisher on 4 October 2014

 

 

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