Decoma International Inc. has reopened talks to buy Federal-Mogul Corp.'s exterior lighting unit, just months after declaring the proposal dead.
The two firms first noted they had opened negotiations for the sale in August, but by November, Decoma President and Chief Executive Officer Alan Power said his company had ended talks, but was ``open to alternative proposals.''
On March 12 the companies announced the deal was back on, with Concord, Ontario-based Decoma set to buy Federal-Mogul's original equipment molded lighting assembly operations, with manufacturing in Matamoros, Mexico, a distribution center in Brownsville, Texas, and an assembly center in Toledo, Ohio. The Canadian exterior specialist also will acquire customer contracts and manufacturing equipment from a Federal-Mogul unit in Hampton, Va.
Southfield, Mich.-based Federal-Mogul will retain bulb and sealed-beam operations in Pennsylvania and Tennessee.
The deal that had been discussed in August would have involved the sale of the Virginia site to Decoma. The new arrangement would transfer equipment only. The units up for sale focus on forward lighting units for cars and trucks and employ more than 400.
The companies did not disclose the sale price. The final outcome still is subject to approval by the U.S. Bankruptcy Court in Wilmington, Del. Federal-Mogul has been operating in Chapter 11 protection from creditors since 2001 because of asbestos litigation claims.
Decoma has wanted to increase its production of exterior lights to provide complete front- and rear-end modules. It currently has lighting manufacturing through its 2001 purchase of Autosystems Manufacturing Inc. of Belleville, Ontario, but also buys lighting systems from other suppliers.