TRW to shed four automotive divisions as it tries to reduce debt from LucasVarity acquisition
CLEVELAND, Ohio (May 18) — TRW Inc. plans to sell four automotive businesses to reduce its debt from its $7 billion US acquisition of LucasVarity PLC.
The company wants to shed TRW Engine Components, fuel-injector supplier Lucas Diesel Systems, TRW Nelson Stud Welding, and LucasVarity Wiring by the end of the year, said chairman and CEO Joseph Gorman.
“Debt reduction is an immediate priority for TRW,” he explained. “Exiting these businesses will contribute significantly to the timely achievement of that goal.”
The company will focus its automotive business on steering, suspension, braking systems, seat belts, steering wheels and air bags.
Gorman expects the divestments to raise $1.2 billion. TRW wants to reduce its debt by approximately $2.5 billion in the next year and a half, including profits from the sale.
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