The debt heavy auto parts company Federal-Mogul, owned by Carl Icahn's company, is being sold in a deal worth about $5.4 billion.
Icahn Enterprises will get $800 million in cash and 29.5 million shares from buyer Tenneco. The Lake Forest, Illinois, auto parts maker said Tuesday that it will split the company into two parts, both to be traded publicly.
Icahn Enterprises bought a majority stake in Federal Mogul in 2008 and took full ownership of the company last year.
Tenneco expects the deal to close later this year and it plans to split the company, based in Southfield, Michigan, into plans to split the auto parts and powertrain technology wings into individual entities in 2019.
Federal Mogul closed its St. Louis brake part foundry in 2007. That site is now being redeveloped as part of Lawrence Group’s City Foundry food hall and entertainment redevelopment.
The $187 million first phase of City Foundry will feature a 10-screen movie theater called Alamo Drafthouse, a beer hall with rooftop beer garden and a Punch Bowl Social gaming and dining venue.
City Foundry is part of a larger 150-acre area bordered by Grand Boulevard and Laclede, Chouteau and Vandeventer avenues called Prospect Yards.
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