Northrop Grumman completes TRW Automotive sale
- By Patience Wait
- Mar 03, 2003
Northrop Grumman Corp. completed its spin-off of TRW Automotive, selling it to affiliates of the Blackstone Group for $4.7 billion. The price includes approximately $3.9 billion in cash and debt retained by TRW Automotive, a $600 million payment-in-kind note, and a 19.6 percent equity investment in the new enterprise.
Cash proceeds from the sale are being used by Northrop Grumman primarily to pay down debt and meet corporate obligations.
"At the time we announced our acquisition of TRW, we stated our intention to separate the automotive business," said Kent Kresa, Northrop Grumman chairman and chief executive officer. "Today, we have delivered on that promise."
With the acquisition of TRW, Los Angeles-based Northrop Grumman became a $25 billion global defense company. It provides products, services and solutions in systems integration, defense electronics, information technology, advanced aircraft, shipbuilding and space technology.