Illinois Tool Works Inc. announced that it has reached a definitive agreement to acquire the Engineered Fasteners and Components business (EF&C) from ZF TRW for approximately US$450 million.
Headquartered in Enkenbach, Germany EF&C has 13 locations globally. It produces engineered fastening systems and interior technical components for the Automotive OEM market in nine countries. Employing around 3,500 people. 2015 revenues were around US$470 million.
“The Engineered Fasteners and Components business will be a highly complementary addition to ITW’s Automotive OEM segment that will broaden our ability to serve our customers and further expand our long-term organic growth potential,” said ITW Executive Vice President Sundaram Nagarajan. “In addition, we believe there will be significant opportunity to enhance the performance of the business through the application of ITW’s 80/20 business process.”
"ZF TRW's Engineered Fasteners and Components business is a well known and respected manufacturer of highly-engineered fasteners and components serving leading automotive manufacturers in all major regions," said Franz Kleiner, CEO of ZF TRW and a member of the ZF Board of Management. "We are fortunate to be selling this business to a highly respected expert in the development and supply of fasteners and components that is seeking to grow their worldwide business."
While the Engineered Fasteners and Components business is successful and profitable, ZF says it is primarily concentrating on the growth of its core businesses in advanced safety, efficiency, electrification and the further development of automated driving. ITW intends to run the Engineered Fasteners and Components business as a standalone division within its automotive OEM segment.
ZF Friedrichshafen AG completed its acquisition of TRW in May 2015 and now describes ZF TRW as its ‘Active and Passive Safety Division’.
ITW will fund most of the purchase of EF&C with non-U.S. cash. Pending customary closing conditions and regulatory approvals, the transaction is expected to close in the first half of 2016.
Will joined Fastener + Fixing Magazine in 2007 and over the last 15 years has experienced every facet of the fastener sector - interviewing key figures within the industry and visiting leading companies and exhibitions around the globe.
Will manages the content strategy across all platforms and is the guardian for the high editorial standards that the Magazine is renowned.
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