ZF to Sell Body Control Unit

ZF Friedrichshafen AG is preparing an estimated $1 billion deal to sell its Body Controls Systems unit in an effort to pay down debt, sources tell Reuters.

The division makes switches, control displays and control modules. The unit, which ZF considers a noncore operation, generates pretax earnings of about $120 million.

When ZF acquired U.S.-based TRW Automotive Holdings Corp. last year, its debt rose to about €19 billion ($21 billion). Since then the German company has been adjusting its portfolio. It sold its engineered fasteners unit for $450 million earlier this year. But it also has launched a bid to acquire Sweden-based powertrain and suspension specialist Haldex AB.