Federal-Mogul to Buy Fel-Pro for $720 Million

Auto parts maker Federal-Mogul Corp. said it agreed to acquire Fel-Pro Inc. for $720 million in cash and stock in its second major purchase in the rapidly consolidating industry. The proposed price for the privately owned gasket maker includes $495 million in cash and $225 million in stock. Analysts said the addition of Fel-Pro would move Federal-Mogul closer to being able to offer complete engine-valve-train and engine-sealing systems, which would allow it to offer greater savings to auto makers. Federal-Mogul also recently acquired British auto parts maker T&N.; About 1,000 to 2,000 of the three companies’ combined 40,000 work force would be cut after the deals close. Southfield, Mich.-based Federal-Mogul shares rose $2.44 to close at $42.25 on the New York Stock Exchange.