Lake Forest's Tenneco to go private in $7.1 billion deal
Automotive parts maker Tenneco is being taken private by funds managed by affiliates of private equity firm Apollo in an all-cash deal valued at about $7.1 billion.
The transaction includes the assumption of Tenneco's debt. Apollo will pay $20 per Tenneco Inc. share, double from Tenneco's closing price Tuesday of $9.98.
Tenneco will continue to operate under its name and brand. The company employs 71,000 people at 260 sites worldwide and supplies markets including light vehicles, commercial trucks, motorsport, and the aftermarket.
The deal is expected to close in the second half of the year. It still needs approval from Tenneco shareholders.
Separately, the Lake Forest, Illinois-based company said it swung to a quarterly loss of $35 million, or 42 cents a share. The adjusted loss totaled $10 million. Revenue declined 6% year-over-year to $4.39 billion as the entire automotive industry grappled with a crippling shortage of computer chips.
Tenneco's shares soared more than 92% before the market open on Wednesday.
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