In a move to support its new portfolio strategy, Textron has announced a definitive agreement to sell its Automotive Trim business to Collins & Aikman Products, a subsidiary of Collins & Aikman Corporation.
This transaction, combined with other recent portfolio actions, is said to reduce Textron’s automotive segment to 9% of total annualised revenues and supports the company’s goal to create a simpler, more focused network of strong businesses.
Textron Automotive Trim had 2000 revenues of over $1.8 billion. Textron’s Kautex and CWC units are not part of the sale.
Textron will receive $1.0 billion in cash and assumed indebtedness plus preferred shares of Collins & Aikman Products with a face value of $245 million, and 18 million shares of common stock of Collins & Aikman Corporation.
The deal is expected to close in the autumn of this year and is subject to financing contingencies and customary regulatory review.
As part of its portfolio strategy, Textron has gradually divested several other non-core assets serving the automotive industry, including its seating comfort product line, carbon materials business and electric motor components business.