Decoma to buy Federal-Mogul OE auto lighting assets
A U.S. federal bankruptcy court has approved a plan authorizing the sale of Federal-Mogul Corporation's original eq...
A U.S. federal bankruptcy court has approved a plan authorizing the sale of Federal-Mogul Corporation’s original equipment (OE) automotive lighting operations to Decoma International (Concord, ON). The sale, which is part of Federal-Mogul’s Chapter 11 reorganization plan, includes an OE automotive lighting operations in Matamoros, Mexico, a distribution centre in Brownsville, TX, an assembly operation in Toledo, OH, as well as specific contracts and equipment at Federal-Mogul’s lighting operations in Hampton, VA. The total purchase price is US$2.25 million. The transaction is scheduled to close April 14, 2003 and is expected to generate approximately US$55 million of sales on an annualized basis.
The OE lighting facilities acquired by Decoma produce primarily forward lighting modules for cars and trucks. Commenting on the purchase Decoma’s president and CEO said: “This acquisition is another strategic step in Decoma’s growth in the automotive lighting business. The addition of these assets compliments our recent successful acquisition of Autosystems and will position Decoma as one of the top five forward lighting suppliers in North America.”