The debt-heavy auto parts company Federal-Mogul, owned by's company Icahn Enterprises LP, is being sold in a deal worth about $5.4 billion.
Federal-Mogul operates an original equipment powertrain components division and sells a portfolio of products in the vehicle after-market. Icahn Enterprises will receive $800 million in cash and 29.5 million shares from buyer Tenneco, worth about $1.64 billion as of Monday. The Lake Forest, Illinois auto parts maker said Tuesday that it will split the company into two parts, both to be traded publicly. Tenneco will also assume Federal-Mogul’s debt, which was about $3.1 billion at the end of last year. Tenneco expects the deal to close later this year and it plans to split the auto parts and powertrain technology wings into individual entities in 2019. Icahn Enterprises bought a majority stake in Federal-Mogul in 2008 and took full ownership of the company last year. Federal-Mogul operates two independent divisions with its headquarters in Southfield, Michigan and nearly 55,000 employees worldwide.