Federal-Mogul Halts Motorparts Spinoff
Federal-Mogul Corp., the diversified automotive supplier and aftermarket parts maker controlled by investor Carl Icahn, said on Jan. 15 it will not spin off its Motorparts aftermarket parts division as it had planned.
The Southfield-based firm said in a statement that its Powertrain and aftermarket parts divisions will continue to operate separately under two CEOs who report to Federal-Mogul's board of directors.
“The separate divisions more effectively serve their unique markets and allow each operating segment to more quickly react to its respective market conditions,” the company said.
Federal-Mogul announced the now-canceled spinoff in 2014, saying the aftermarket parts division would split off by the first half of 2015.
Mr. Icahn, meanwhile, has made several moves in the aftermarket retail world that could affect Federal-Mogul. On Dec. 30, his Icahn Enterprises L.P. won a $1 billion bidding war over tire giant Bridgestone Americas and its Bridgestone Retail Operations L.L.C. division for Philadelphia-based tire, auto service and auto parts retailer Pep Boys-Manny Moe & Jack.
Icahn Enterprises is carrying out the acquisition through IEP Parts Acquisition L.L.C., a wholly owned automotive aftermarket subsidiary.
Federal-Mogul owns about 20 major aftermarket auto parts brands, such as Champion spark plugs, Moog steering parts, Anco wiper blades and Wagner brake parts.
Icahn's Auto Plus aftermarket company is the retail brand name of Kennesaw, Ga.-based IEH Auto Parts, which describes Auto Plus as a leading distributor of replacement parts, equipment, tools, accessories, paint and related products in the automotive aftermarket.
This article originally appeared on Tire Business,