LOS ANGELES, March 3, 2003 -- Northrop Grumman Corporation (NYSE:NOC) announced today that it has completed the $4.7 billion sale of TRW Automotive to affiliates of The Blackstone Group. The consideration included approximately $3.9 billion in the form of cash and debt retained by TRW Automotive, a $600 million payment-in-kind note, and a 19.6 percent equity investment in the new enterprise.
Northrop Grumman said cash proceeds from the sale are expected to be used primarily to pay down debt and to meet corporate obligations.
"At the time we announced our acquisition of TRW, we stated our intention to separate the automotive business," said Kent Kresa, Northrop Grumman chairman and chief executive officer. "Today, we have delivered on that promise."
Ronald D. Sugar, Northrop Grumman president and chief operating officer said, "We are now a preeminent global defense enterprise, tightly focused on the growing needs of our government customers. Going forward, we will complete the integration of the former TRW defense units and execute on our unparalleled portfolio of businesses."
TRW Automotive, headquartered in Livonia, Mich., is among the world's largest and most diversified suppliers of automotive systems, modules and components, with annual sales of over $10 billion.
Northrop Grumman Corporation is a $25 billion global defense company, headquartered in Los Angeles, Calif. Northrop Grumman provides technologically advanced, innovative products, services and solutions in systems integration, defense electronics, information technology, advanced aircraft, shipbuilding and space technology. With approximately 120,000 employees and operations in all 50 states and 25 countries, Northrop Grumman serves U.S. and international military, government and commercial customers.
Salomon Smith Barney and Stephens Financial Group acted as financial advisors to Northrop Grumman. JP Morgan, Merrill Lynch and Lehman Brothers acted as financial advisors to Blackstone.
Note: Certain statements and assumptions in this release contain or are based on "forward-looking" information (that Northrop Grumman believes to be within the definition in the Private Securities Litigation Reform Act of 1995) and involve risks and uncertainties, and include, among others, statements in the future tense, and all statements accompanied by terms such as "project," "expect," "estimate," "assume," or variations thereof. This information reflects the company's best estimates when made, but the company expressly disclaims any duty to update this information if new data becomes available or estimates change after the date of this release.
Various risk factors are set out in Northrop Grumman's filings from time to time with the Securities and Exchange Commission, including, without limitation, Northrop Grumman reports on Form 10-K and Form 10-Q and the company's most recently filed amendment to Form S-4.
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CONTACT: Northrop Grumman Corporation Frank Moore (Media) (310) 201-3335 Gaston Kent (Investors) (310) 201-3423 The Blackstone Group John Ford (212) 583-5559