Carl Icahn's Icahn Enterprises sells auto supplier Federal Mogul to Tenneco for $5.4B

Billionaire investor Carl Icahn has agreed to sell automotive supplier Federal Mogul to manufacturer Tenneco about a decade after acquiring majority control of the company in the midst of the U.S. auto industry's existential crisis.

Icahn Enterprises announced Tuesday that it would offload Federal Mogul for cash and stock worth about $5.4 billion. Federal Mogul's products include brake parts, wipers and chassis components. 

Tenneco plans to split into two companies after the acquisition: one focused on aftermarket and ride performance products and another geared toward powertrain technology. Tenneco sells products under brands such as Monroe, Walker and XNOx.

The deal comes after Icahn last year acquired 100% of Federal-Mogul and took the company private.

"I am very proud of the business we have built at Federal-Mogul and agree with Tenneco regarding the tremendous value in the business combination and separation into two companies," Icahn said in a statement. "We expect to be meaningful stockholders of Tenneco going forward and are excited about the prospects for additional value creation."

Southfield, Mich.-based Federal Mogul has about 55,000 employees and $7.4 billion in revenue.

Lake Forest, Ill.-based Tenneco has about $9.3 billion in revenue and 32,000 employees

Follow Paste BN reporter Nathan Bomey on Twitter @NathanBomey.