NORTHROP SELLS OFF AUTO-PARTS SECTOR TRW AUTOMOTIVE BOUGHT BY BLACKSTONE.Byline: Gregory J. Wilcox Staff Writer CENTURY CITY - Defense giant Northrop Grumman Northrop Grumman Corporation (NYSE: NOC) is an aerospace and defense conglomerate that is the result of the 1994 purchase of Grumman by Northrop. The company is the third largest defense contractor for the U.S. Corp. announced Monday that it completed the $4.7 billion sale of TRW Automotive
On 12th December 12 2002, Northrop Grumman acquired TRW Inc. An 80.1% stake (later increased to more than 90%) in TRW Automotive Holdings, including the former LucasVarity Automotive, was spun off to to affiliates of the Blackstone Group Blackstone Group L.P. (NYSE: BX) is a prominent private equity and investment management firm founded in 1985 by Peter G. Peterson and Stephen A. Schwarzman. The company is based in New York City, in River House on Park Avenue at Fifty-first Street, with offices in Atlanta, . Century City-based Northrop Grumman will use the proceeds to reduce debt and other corporate purposes. Northrop Grumman will get about $3.9 billion in cash and retain a 19.6 percent equity stake in the auto-parts business and some debt. Last year New York-based Blackstone assembled the world's largest equity fund of $6.45 billion and this is its first investment. When Northrop Grumman bought TRW TRW The Real World (TV reality show) TRW The Right Way TRW Tactical Reconnaissance Wing TRW The Retriever Weekly (University of Maryland, Baltimore, MD) TRW Thompson Ramo Wooldridge Inc for $7.8 billion last summer, company officials vowed to sell the auto-parts sector because it was not related to defense operations. The TRW acquisition made Northrop Grumman the nation's second largest defense company. ``Today, we have delivered on that promise,'' Kent Kresa, Northrop Grumman's chairman and chief executive officer, said in a statement. At one point Northrop Grumman officials had estimated the auto-parts business was worth $5.5 billion but bidding on the operation never reached that level. TRW Automotive is based in Livonia, Mich., and makes a variety of vehicle-restraint systems. It has annual sales of more than $10 billion. Blackstone spokesman John Ford said it was too early to say what plans the investment firm had for the auto-parts business. Analyst Christopher H. Mecray at Deutsche Bank Deutsche Bank AG (IPA: /'dɔɪ.tʃə/[1]) (ISIN: DE0005140008, NYSE: DB) (English: German Bank North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. said the sale went pretty much as expected and that Northrop Grumman would probably sell its remaining stake in TRW. Northrop Grumman's stock closed Monday at $86.82, down eight cents. |
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