Honeywell announced that it has reached a definitive agreement to sell its Friction Materials business unit to Federal Mogul Corporation for approximately $155 million. The transaction, subject to required regulatory approvals and applicable information and consultation requirements, is expected to close in the second half of 2014.
Honeywell Friction Materials is a manufacturer of disc brake pads and braking system components for original equipment manufacturers and the aftermarket covering passenger car, light truck, commercial vehicle, railway and other industrial applications.
The transaction is expected to generate an after tax loss of approximately ($0.04) per share, which will be recognized in the fourth quarter 2013; however, the loss is not expected to affect Honeywell's fourth quarter 2013 or full year 2014 financial outlook.
Honeywell will continue to operate its friction business as usual with no planned changes in staffing, or production through the closing of the transaction.