German auto supplier ZF Friedrichhafen’s net debt will rise to some €8.5 billion ($11 billion), or about 2.4 times core earnings (EBITDA), after it buys rival TRW, a banker familiar with the deal said.
Earlier this week, ZF agreed to buy U.S.-based TRW for $13.5 billion including debt, paying $105.60 in cash for each TRW share, or nearly $12 billion based on shares outstanding.
German partsmaker ZF Friedrichshafen has reached a deal to buy U.S.-based TRW Automotive Holdings for $105.60 a share, completing a supply chain megadeal that has been in the works since mid-July.The transaction will create the world’s second-largest auto supplier with pro forma combined revenue of about €30 billion ($41 billion) and 138,000 employees, ZF and TRW said in separate statements.
By Robert Wright in New York and Henry Foy in London
Shares in TRW Automotive, one of the world’s largest auto component suppliers, surged on Thursday after it said it had received a “preliminary, non-binding” takeover approach, later confirmed as coming from ZF Friedrichshafen of Germany.
The race for ever greener vehicles is, by now, apparent to pretty much anyone. To this end, car making industry giants are pouring millions into research and development.
