Northrop Grumman to Acquire TRW for $60 per Share in Stock
July 2, 2002
Northrop Grumman Corp., Los Angeles, Calif., and TRW Inc., Cleveland, Ohio, have entered into a definitive merger agreement. Under terms of the agreement, Northrop Grumman will acquire TRW for $60 per share in common stock in a transaction valued at approximately $7.8 billion, plus the assumption of TRW's net debt at the time of closing. After completion of the merger, Northrop Grumman plans to separate TRW's automotive business, either through a sale or a spin-off of the business to shareholders. TRW's previously announced agreement to sell its Aeronautical Systems business to Goodrich Corp. for $1.5 billion will remain unaffected by the merger. In addition, TRW's defense business, similar to the Litton and Newport News businesses, will be initially operated as a separate Northrop Grumman sector, reporting to the office of the chairman. The companies expect to complete the transaction in the four quarter of 2002.