During Tenneco’s Aug. 6 quarterly report conference call, Co-CEO Brian Kesseler provided analysts with an update on the pending spinoff into two companies: the aftermarket-oriented DRiV and New Tenneco.
Kesseler said the New Tenneco and DRiV teams are operating as distinct divisions in preparation for the spinoff. The businesses already operate out of separate facilities and with separate personnel. The main task to be accomplished in the second half of 2019 is to have them operating on their own IT systems.
“We remain on track to complete the spin of DRiV in mid-2020,” he told analysts on the call. “We are making progress with the physical separation of the two divisions, and have a clear path to separating the internal processes and systems by the end of 2019.”
Co-CEO Roger Wood told analysts that management is planning for the company to be “operationally ready” for the spinoff by the end of 2019. “We are working to put the divisions in the best possible balance sheet position ahead of the spin,” Wood said.
Kesseler added: “As we are keenly focused on driving operating performance improvements, we also continue to evaluate additional alternatives to further reduce leverage and accelerate the separation of the businesses. As you saw last quarter with the wipers business, we will consider options for businesses that are not core to our strategic portfolio, and we will continue to look for opportunities to reduce leverage and create value for our shareholders.” — Marc Vincent