Auto Service World
News   March 3, 2003   by Auto Service World

Sale of TRW Automotive Completed

Northrop Grumman Corporation has completed the $4.7 billion U.S. sale of TRW Automotive to affiliates of investment firm The Blackstone Group.
The consideration included approximately $3.9 billion U.S. in the form of cash and debt retained by TRW Automotive, a $600 million U.S. payment-in-kind note, and a 19.6 percent equity investment in the new enterprise. TRW Automotive is well known in the aftermarket, and sells products under its own and Autospecialty brand names.
Northrop Grumman said cash proceeds from the sale are expected to be used primarily to pay down debt and to meet corporate obligations.
“At the time we announced our acquisition of TRW, we stated our intention to separate the automotive business,” said Kent Kresa, Northrop Grumman chairman and chief executive officer. “Today, we have delivered on that promise.”
Ronald D. Sugar, Northrop Grumman president and chief operating officer said, “We are now a pre-eminent global defence enterprise, tightly focused on the growing needs of our government customers. Going forward, we will complete the integration of the former TRW defence units and execute on our unparalleled portfolio of businesses.”
TRW Automotive, headquartered in Livonia, Mich., is a diversified supplier of automotive systems, modules and components, with annual sales of over $10 billion U.S..
Northrop Grumman Corporation is a $25 billion global defence company, headquartered in Los Angeles, Calif. Northrop Grumman provides technologically advanced, innovative products, services and solutions in systems integration, defence electronics, information technology, advanced aircraft, shipbuilding and space technology.

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