LONDON, UK / ACCESSWIRE / April 12, 2018 / Active-Investors.com has just released a free research report on Icahn Enterprises L.P. (NASDAQ: IEP). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/'symbol=IEP as the Company's latest news hit the wire. On April 10, 2018, the Company announced the sale of its indirect wholly-owned subsidiary Federal-Mogul LLC to Tenneco Inc. (NYSE: TEN). Icahn Enterprises is the investment firm of activist investor Carl C. Icahn, and had completed the acquisition of Federal-Mogul, a leading global supplier of automotive products, in January 2017 and turned it into a privately held Company. The current cash plus stock transaction is valued at approximately $5.4 billion. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Icahn Enterprises and Tenneco most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Transaction Details
Tenneco has agreed to pay Icahn Enterprises approximately $5.4 billion for the acquisition of Federal-Mogul, which includes $800 million in cash; 29.5 million Tenneco shares; and the assumption of all debts of Federal-Mogul. The total shares will include 5.7 million Tenneco voting shares and 23.8 million non-voting Tenneco shares, which can be converted to voting shares at the time of sale. Both the voting and non - voting shares will be valued equally. For the initial 150 days of completing the deal, there will be a limit on the number of Tenneco shares that can be sold. Tenneco has the option of reducing the number of non-voting shares while proportionately increasing the cash amount at the time of closing.
The deal is expected to close in H2 2018 and is subject to regulatory and shareholders' approvals and other closing conditions. The deal is not subject to any financing condition.
Tenneco expects the deal to be accretive to its annual earnings by at least $200 million and its working capital by $250 million.
Tenneco's plans for Federal-Mogul
On completion of the deal, Tenneco plans to separate the business of Federal-Mogul into two independent and publicly-traded Companies, and which will also be combined with Tenneco's existing complementary businesses. One will be an aftermarket and ride performance Company, while the second one will be a powertrain technology Company. The Company expects the separation to be completed in H2 2019.
The Aftermarket and Ride Performance Company will integrate Tenneco's Ride Performance business and Federal-Mogul's Motor Parts business, and form one of the leading global aftermarket Company with a portfolio of some of the strongest brands. The Powertrain Technology Company will integrate Tenneco's Clean Air product line and Federal Mogul's Powertrain Business, and create one of the largest pure play powertrain suppliers with a robust portfolio of products and systems solutions.
Tenneco's rationale behind creating two independent Companies is to create leaders in their respective markets with strong financials, a broader portfolio of product and services, poised to take advantage of opportunities in their respective fields, and provide distinct investment opportunities for stakeholders.
Management Quotes
Commenting on the acquisition of Federal-Mogul, Brian Kesseler, Chief Executive Officer (CEO) of Tenneco, said:
"This is a landmark day for Tenneco with an acquisition that will transform the Company by creating two strong leading global Companies, each in an excellent position to capture opportunities unique to their respective markets. Federal-Mogul brings strong brands, products, and capabilities that are complementary to Tenneco's portfolio and in-line with our successful growth strategies."
Carl C. Icahn, Chairman of Icahn Enterprises, added:
"I am very proud of the business we have built at Federal-Mogul and agree with Tenneco regarding the tremendous value in the business combination and separation into two Companies."
About Federal-Mogul LLC
Southfield, Michigan-based Federal-Mogul operates two independent divisions - Federal-Mogul Powertrain and Federal-Mogul Motor Parts. Federal-Mogul Powertrain designs and manufactures original equipment powertrain components and systems protection products for automotive, heavy-duty, industrial, and transport applications; while Federal-Mogul Motor Parts sells and distributes a broad portfolio of products in the global vehicle aftermarket and original equipment vehicle manufacturers like braking, wipers, and a range of chassis components. Some of the leading aftermarket brands include ANCO®, Beck/Arnley®, BERU®*, Champion®, Interfil®, AE®, Fel-Pro®, FP Diesel®, Goetze®, Glyco®, National®, Nüral®, Payen®, Sealed Power®, and Speed-Pro® engine products; MOOG®; and Abex®, Ferodo®, Jurid® and Wagner® brake products, and lighting. The Company has revenues of $7.8 billion and over 55,000 employees worldwide.
About Icahn Enterprises L.P.
Icahn Enterprises is a Delaware master limited partnership and a diversified holding Company. The Company is engaged in ten business segments which include Investment, Automotive, Energy, Gaming, Railcar, Mining, Food Packaging, Metals, Real Estate, and Home Fashion. Activist investor Carl C. Icahn is the Chairman of the organization. Icahn Enterprises' net income was $2.4 billion, or $14.80 per depositary unit, for FY17.
About Tenneco Inc.
Lake Forest, Illinois-based Tenneco is a global designer, manufacturer, and distributor of Ride Performance and Clean Air products, and technology solutions for diversified automotive and commercial vehicle original equipment markets, including light vehicle, commercial truck, off-highway equipment, and the aftermarket. The Company has 92 manufacturing facilities and 15 engineering and technical centers across the globe. Some of its leading brands include Monroe®, Walker®, XNOx™ and Clevite®Elastomer. The $9.3 billion Company has an employee strength of over 32,000 people globally.
Stock Performance Snapshot
April 11, 2018 - At Wednesday's closing bell, Icahn Enterprises' stock fell 1.48%, ending the trading session at $60.53.
Volume traded for the day: 59.67 thousand shares.
Stock performance in the last month - up 2.61%; previous three-month period - up 8.57%; past twelve-month period - up 21.55%; and year-to-date - up 14.21%
After yesterday's close, Icahn Enterprises' market cap was at $10.37 billion.
Price to Earnings (P/E) ratio was at 5.17.
The stock has a dividend yield of 11.56%.
The stock is part of the Conglomerates sector, categorized under the Conglomerates industry.
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