FRIEDRICHSHAFEN, Germany – ZF Friedrichshafen AG (ZF) will double its sales in China after the acquisition of TRW Automotive Holdings Corp. (TRW), according to a ZF news release.
ZF’s presence in China accounts for two-thirds of the company’s total regional sales of €3 billion ($4.1 billion) in the Asia-Pacific region. Together with TRW, which also has a strong presence in China, ZF would achieve a sales volume of €4.0 billion in China. Furthermore, the combined company would achieve annual sales of about €5.4 billion in the Asia-Pacific region.
ZF is currently expanding its R&D center in Shanghai to 800 employees. TRW’s new R&D facility in the city will eventually house 1,200 employees, making it TRW’s largest R&D site worldwide.
ZF and TRW announced on September 15 that they have entered into a definitive agreement under which ZF will acquire TRW. Under the terms of the agreement, ZF will acquire TRW in an all-cash transaction valued at approximately $12.4 billion based on equity value. The agreement has been approved by ZF’s Supervisory Board and Management Board and TRW’s Board of Directors. TRW stockholders will receive $105.60 in cash for each share of TRW stock.
The combined company will be a global leader in the automotive supplier business with proforma combined sales of about €30 billion and 138,000 employees. ZF will remain headquartered in Friedrichshafen and TRW will be integrated into ZF as a separate business division.
ZF expects the transaction to close in the first half of 2015. Following the closing, TRW will be delisted from the New York Stock Exchange.