US technologies manufacturer Honeywell has reached a definitive agreement with Federal-Mogul Corporation in order to sell its Friction Materials business unit. The transaction worth about $155 million should be completed in the second half of this year, according to a press release sent to Govnet.
'Smart investment decisions over the past few years have significantly improved the competitive position of Friction Materials faster than we originally planned.(...) 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.', Dave Cote, Honeywell Chairman and CEO, said.Provided the required approvals are received and the transaction is carried out as expected, Federal-Mogul will also take over Honeywell’s plant from Ploiesti, which has been officially inaugurated recently. In any case, Honeywell, which has been operating in Romania over the past 15 years, will keep running its business in the transportation systems area through the Turbocharger Business, the Romania-based plant being the world’s largest.