MORRIS TOWNSHIP, N.J., Jan. 7, 2014 /PRNewswire/ -- Honeywell ( NYSE: HON) today announced that it has reached a definitive agreement to sell its Friction Materials business unit to Federal Mogul Corporation ( NASDAQ: FDML) 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 leading 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.
"Smart investment decisions over the past few years have significantly improved the competitive position of Friction Materials faster than we originally planned," said Honeywell Chairman and Chief Executive Officer Dave Cote. "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."Honeywell will continue to operate its friction business as usual with no planned changes in staffing, or production through the closing of the transaction. Honeywell ( www.honeywell.com) is a Fortune 100 diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; turbochargers; and performance materials. Based in Morris Township, N.J., Honeywell's shares are traded on the New York, London, and Chicago Stock Exchanges. For more news and information on Honeywell, please visit www.honeywellnow.com. This release contains certain statements that may be deemed "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, that address activities, events or developments that we or our management intends, expects, projects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are based upon certain assumptions and assessments made by our management in light of their experience and their perception of historical trends, current economic and industry conditions, expected future developments and other factors they believe to be appropriate. The forward-looking statements included in this release are also subject to a number of material risks and uncertainties, including but not limited to economic, competitive, governmental, and technological factors affecting our operations, markets, products, services and prices. Such forward-looking statements are not guarantees of future performance, and actual results, developments and business decisions may differ from those envisaged by such forward-looking statements. We identify the principal risks and uncertainties that affect our performance in our Form 10-K and other filings with the Securities and Exchange Commission.