Federal-Mogul Corporation has signed a letter of intent to sell certain United States camshaft operations to ASIMCO.
The sale to ASIMCO, an automotive components manufacturing company based in Beijing, China, for $25.7 million U.S. will also allow Federal-Mogul to retain the accounts receivable of these operations. The proposed sale is subject to approval by the U.S. Bankruptcy Court in Wilmington, Delaware, in addition to completion of due diligence and other customary conditions to closing. A hearing on the letter of intent is scheduled for May 29, 2002. The proposed sale includes plants in Grand Haven, Michigan, and Orland, Indiana, which produce machined cast iron and steel camshafts, as well as Federal-Mogul’s 80-percent share of an assembled camshaft joint venture with Nippon Piston Ring Co., Ltd. in Grand Haven.
The operations to be sold have about 500 total employees and had combined sales of approximately $80 million U.S. in 2001.
The letter of intent does not include a Federal-Mogul plant in Jackson, Mich., which produces machined camshafts primarily for the automotive aftermarket, nor does it include Federal-Mogul’s camshaft operations in Saltillo, Mexico; Araras, Brazil; and Lydney and Elstead, United Kingdom.
“We are pleased to enter into this transaction with ASIMCO, a leading components manufacturer that has significant relationships with North American original equipment manufacturers and Tier 1 suppliers,” said Charles Grant, vice president, corporate development and strategic planning, Federal-Mogul.
“We believe that ASIMCO will be able to support and grow this business, which was previously identified as non-strategic to Federal-Mogul. Their commitment to the long-term viability of this business should be good for customers and employees.”
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