Illinois Tool Works acquires ZF TRW Engineered Fasteners and Components business (EF&C)

Illinois Tool Works acquired ZF TRW Engineered Fasteners and Components business (EF&C) for approximately $450 million, a transaction completed in July 2016, structured as all cash (funded majority with non-U.S. cash). The deal was a carve-out.

ZF TRW Engineered Fasteners and Components business (EF&C) operates in Automotive OEM, is based in Headquartered in Germany; 13 manufacturing facilities globally, had revenue of about approximately $470 million in revenues in 2015. The Engineered Fasteners and Components business (EF&C) is a leading global supplier of engineered fastening systems and interior technical components to the Automotive OEM market. Headquartered in Germany, the company operates 13 manufacturing facilities globally and employs approximately 3,500 people.

“The Engineered Fasteners and Components business will be a highly complementary addition to ITW's Automotive OEM segment that will broaden our ability to serve our customers and further expand our long-term organic growth potential. In addition, we believe there will be significant opportunity to enhance the performance of the business through the application of ITW's 80/20 business process.”

Highly complementary to ITW's existing Automotive OEM segment; significant margin-improvement opportunity through application of ITW's 80/20 business process. ITW expected the acquisition to be slightly accretive to EPS in the first 12 months and to generate long-term returns on invested capital at or above the company's 20-plus percent target. Automotive OEM segment