
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SATURDAY, September 18, 1993                   TAG: 9309180097
SECTION: BUSINESS                    PAGE: A-8   EDITION: METRO 
SOURCE: The New York Times
DATELINE:                                 LENGTH: Short

FEDERAL-MOGUL BUYING SPX DIVISIONS

Federal-Mogul Corp., a fast-growing maker of automobile replacement parts that operates an engine bearings plant in Blacksburg, agreed Thursday to buy the engine and chassis components division of SPX Corp. for $150 million.

The acquisition of SPX's Sealed Power Replacement division, which distributes more than 60,000 engine and chassis parts, will increase Federal's sales to the replacement parts market to about $1.16 billion.

After several years of flat sales, the replacement-parts market is beginning to grow as the average age of cars on the road has increased, to about nine years now.

The total replacement market, including engine and chassis parts, glass, tires and antifreeze, has estimated sales of $48.9 billion this year, according to the Automobile Market Research Council.

Dennis J. Gormley, Federal-Mogul chairman and chief executive, in recent years has expanded the Southfield, Mich.-based company's presence in the aftermarket, which is less cyclical than the market for parts to automobile manufacturers for use on new cars.

"The replacement parts market is more stable, particularly for the products we supply," said Gormley. "We're insulated from the economic fluctuations" associated with new car and truck sales.

The acquisition is the second in as many years for Federal-Mogul, which ranks as one of the five largest companies in the automobile replacements parts market.

Last year, Federal-Mogul bought the automotive parts unit of Cleveland-based TRW Inc.

by CNB