Tenneco signed a definitive agreement to acquire Federal-Mogul, a leading global supplier to original equipment manufacturers and the aftermarket, from Icahn Enterprises L.P. for $5.4 billion. Tenneco also announced its intention to separate the combined businesses into two independent, publicly traded companies that will establish an aftermarket and ride performance company and a powertrain technology company.

The strategic combination of Tenneco’s Ride Performance business with Federal-Mogul’s Motorparts business will establish a global aftermarket leader with a portfolio of some of the strongest brands in the aftermarket, including Monroe, Walker, Wagner, Champion, Fel-Pro and MOOG.

The powertrain technology company will be one of the largest pure-play powertrain suppliers through the combination of Tenneco’s Clean Air product line and Federal Mogul’s Powertrain business. The combined business will offer a portfolio of products and systems solutions to improve engine performance and meet pollutant regulations and fuel-economy standards.