TRW Inc. has agreed to sell Lucas Diesel Systems to Delphi Automotive Systems Corp. for $871 million in cash. Delphi will acquire substantially all Lucas assets, certain liabilities, and its associated aftermarket activities.
Upon closing, Lucas Diesel will be renamed Delphi Diesel Systems.
TRW acquired Lucas earlier this year when it bought U.K. based LucasVarity. TRW said it would sell Lucas to pare down debt.
The acquisition will make Delphi the second largest producer of diesel fuel injectors, behind Germany's Robert Bosch. It will add an important piece to their European product offering and will help the company break away from former parent General Motors. Delphi says addition of the Lucas business will increase its non-GM revenue by about 16%.