Delphi enters $19 million purchase agreement with Tenneco for Kettering facility

By Jennifer Lanning Drey

Portland, Ore., March 10 - Delphi Automotive Systems LLC and Tenneco Inc. have entered into a purchase agreement under which Tenneco will acquire certain ride control assets and inventory at Delphi's Kettering, Ohio, facility, according to a Tenneco news release.

Under the agreement, Tenneco will pay about $10 million for existing ride control components inventory and about $9 million for certain machinery and equipment. Tenneco will also lease a portion of the Kettering, Ohio, 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 plant.

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 Ohio facility.

The deal is subject to approval by the U.S. Bankruptcy Court for the Southern District of New York.

Tenneco is a Lake Forest, Ill.-based producer of emission-control and ride-control products for the automobile market.

Delphi is a Troy, Mich.-based automotive electronics manufacturer that filed for bankruptcy protection on Oct. 8, 2005. Its Chapter 11 case number is 05-44481.

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