SOUTHFIELD, Mich. (AP) — Auto parts supplier Federal-Mogul is buying Affinia's chassis components business to help broaden its product offerings.
Financial terms were not disclosed.
Affinia Group Inc.'s chassis components business serves U.S. aftermarket customers with branded and private label chassis product lines. The company said that the sale will help it to pay down its debt.
"This combination will allow us to better meet the needs of current customers and increase our ability to attract new customers," Kevin Freeland, Federal-Mogul Corp. co-CEO and CEO of its vehicle components segment, said in a statement on Wednesday.
The deal will give Federal-Mogul a wider range of wheel-end and steering products, including tie rods, ball joints, suspension and steering linkages, and alignment products. It will also be able to cover a greater portion of the U.S. car and pickup truck population, including foreign nameplates and heavy-duty applications.
Federal-Mogul said that it will still offer products through its Moog chassis components brand and will serve U.S. automotive aftermarket distributors and retailers with private label branded components.
Federal Mogul shares rose 12 cents to $19.80 in morning trading Wednesday.