LAKE FOREST, Ill. (March 14, 2008) — Tenneco Inc. has entered into a purchase agreement with Delphi Automotive Systems L.L.C. to acquire certain ride control assets and inventory at Delphi's Kettering, Ohio, facility.
This purchase agreement has been filed with the federal bankruptcy court as part of Delphi's Chapter 11. The closing of the purchase is subject to certain closing conditions, including bankruptcy court approval, Tenneco said.
As part of the purchase agreement, Tenneco would pay approximately $10 million for existing ride control components inventory and approximately $9 million for certain machinery and equipment. Tenneco would also lease a portion of the Kettering facility from Delphi.
In connection with the purchase agreement, Tenneco has entered into an agreement with the International Union of Electrical Workers, which represents the Delphi workforce at the Kettering plant. The agreement was ratified by the IUE's rank and file in August, Tenneco said.
Tenneco has also entered into a long-term supply agreement with General Motors Corp. to continue to supply passenger car shock and strut business to GM from the Kettering facility.