Contact:
At Federal-Mogul At Honeywell
Kimberly A. Welch Rich Silverman
248-354-1916 973-455-4732
kim_welch@fmo.com richard.silverman@honeywell.com
Federal-Mogul to Acquire Honeywell's Bendix Friction Materials Business in
Transaction that Provides Federal-Mogul and Honeywell Bankruptcy Court
Protection Against Asbestos Liabilities
Southfield, Michigan and Morris Township, New Jersey, January 30, 2003 -
Federal-Mogul Corporation (OTC Bulletin Board: FDMLQ) today announced it has
entered into a letter of intent to acquire Honeywell's (NYSE: HON) Bendix
friction materials business. Consummation of the acquisition will be conditional
upon Honeywell receiving a bankruptcy court-issued permanent injunction
shielding it from all current and future asbestos liabilities related to
Honeywell's worldwide friction materials business.
The completion of the acquisition is subject to Bankruptcy Court approval
and customary conditions, including obtaining any governmental approvals, and
will occur after Federal-Mogul emerges from Chapter 11. Federal-Mogul, its
United States subsidiaries, and certain of its United Kingdom subsidiaries
voluntarily filed for financial restructuring under Chapter 11 of the U.S.
Bankruptcy Code in October 2001.
Federal-Mogul Chairman and Chief Executive Officer Frank Macher said: "This
acquisition represents a unique way, given our Chapter 11 status, to grow our
core product base and position Federal-Mogul to emerge from its bankruptcy
proceedings a stronger company."
Under terms of the transaction, Federal-Mogul would acquire Bendix's
worldwide friction materials business, with the exception of certain U.S.-based
assets, subject to certain liabilities. For up to two years following the
closing, Honeywell will continue to operate certain of its U.S.-based plants to
manufacture friction materials on a contract basis for Federal-Mogul.
Federal-Mogul will obtain the rights to the Bendix and Jurid brand names for
friction products. Honeywell would retain the right to use the Bendix brand name
in its aerospace business.
The Bendix friction materials business is a part of Honeywell's
Transportation & Power Systems group.
Federal-Mogul is a global supplier of automotive components and sub-systems
serving the world's original equipment manufacturers and the aftermarket. The
company utilizes its engineering and materials expertise, proprietary
technology, manufacturing skill, distribution flexibility and marketing power to
deliver products, brands and services of value to its
customers. Federal-Mogul is focused on the globalization of its teams, products
and processes to bring greater opportunities for its customers and employees,
and value to its constituents. Headquartered in Southfield, Michigan,
Federal-Mogul was founded in Detroit in 1899 and today employs 49,000 people in
24 countries. For more information on Federal-Mogul, visit the company's web
site at http://www.federal-mogul.com.
Honeywell is a diversified technology and manufacturing leader, serving
customers worldwide with aerospace products and services; control technologies
for buildings, homes and industry; turbochargers; automotive products; specialty
chemicals; fibers; and electronic and advanced materials. Based in Morris
Township, New Jersey, Honeywell is one of 30 stocks that make up the Dow Jones
Industrial Average and is a component of the Standard & Poor's 500 Index. Its
shares are traded on the New York Stock Exchange under the symbol HON, as well
as on the London, Chicago and Pacific Stock Exchanges. For more information
about Honeywell, visit www.honeywell.com.