20 May 1999
TRW Inc. announced, following the acquisition of UK-based LucasVarity plc, that it will divest the Lucas Diesel Systems operations, as well as three other businesses including TRW Engine Components, TRW Nelson(R) Stud Welding, and LucasVarity Wiring.
Net proceeds from these divestitures, estimated to be $1.2 billion to $1.5 billion, will be applied to reduce debt incurred to finance the acquisition of LucasVarity. The company has established a goal of reducing its net debt during the next 18 months by approximately $2.5 billion, including divestiture proceeds.
TRW has retained Lazard Freres to advise in the divestiture of the diesel systems, J.P. Morgan for engine components business, and McDonald Investments Inc. for Nelson Stud Welding.
Lucas Diesel Systems, employing 9,200, is one of the world's largest manufacturers of diesel fuel injection systems, serving the car, van, truck, bus, agricultural, industrial and marine sectors. It supplies fuel injection systems to more than one third of the European diesel car and van market, and its customers include all of Europe's major diesel engine manufacturers.
TRW Engine Components is a manufacturer of automotive engine components, including valves, cotters, rotators, retaining caps, and valve train systems. It has approximately 6,000 employees and operates in 12 countries.
TRW Nelson(R) Stud Welding is a producer of stud welding fasteners and equipment. Nelson Stud Welding employs about 250 people.
The Lucas Wiring business, previously announced for sale March 29, is a U.K. supplier of electrical wiring systems. Lucas Wiring employs 5,500 people and has operations in the U.K., Germany, Poland, Slovakia, Egypt and Turkey.
Contact: Jay McCaffrey, 216/291-7179