Exclusive ZF Sells Fasteners and Components Business for $450 million to Illinois Tool Works

ZF Friedrichshafen, the world’s third-largest car-parts supplier, has agreed to sell its global engineered fasteners and components business to Illinois Tool Works for $450 million. The divestment follows the $12.5-billion purchase of U.S. rival TRW last year, a deal ZF made to grow in the market of automated driving technologies. “While the engineered fasteners and components business is successful and profitable, ZF is primarily concentrating on the growth of its core businesses in advanced safety, efficiency, electrification and the further development of automated driving,” ZF said in a statement. The fasteners and components business, which is based in Enkenbach in south-west Germany, employs 3,500 people worldwide. The engineered fastening systems and interior technical component are supplied to makers of original equipment for cars. The sale will be completed in the first half of this year, ZF said. Illinois Tool Works, which is listed on the New York Stock Exchange, will run the fasteners and components division as a standalone business within their automotive original equipment manufacturer department.