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Autoliv (ALV) Closes Spin-off of Electronics Segment Veoneer

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Autoliv Inc. (ALV - Free Report) has made the announcement of closing the spin-off of its electronics segment, Veoneer, Inc. This spin-off completes the process that started in September 2017 when the Stockholm, Sweden-based leader in automotive safety systems, announced its intention to establish its electronics segment as a separate entity. The underlying aim was to create two isolated entities, capable of catering to two different markets, with separate product offerings.

Prior to the spin-off, Autoliv made cash contributions to Veoneer so that Veoneer has total cash liquidity of around $1 billion. Autoliv channelized the contribution through a mixture of external funding and existing cash. With the completion of the spin-off, Veoneer will begin regular trading on the New York Stock Exchange and on Nasdaq Stockholm as an independent company.

Autoliv is engaged in developing and manufacturing automotive safety systems for all major automotive manufacturers in the world. With its robust product portfolio and capabilities, Autoliv is likely to further drive innovation.

In the past year, shares of Autoliv have outperformed the industry it belongs to. During the period, its stock has grown 28.5% in comparison with the industry’s increase of 15.4%.


 

Autoliv currently has a Zacks Rank #3 (Hold).

A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. (ALSN - Free Report) , Ferrari N.V. (RACE - Free Report) and Fox Factory Holding Corp. (FOXF - Free Report) . While both Allison Transmission and Ferrari sport a Zacks Rank #1 (Strong Buy), Fox Factory carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Allison Transmission has an expected long-term growth rate of 10%. Over the past year, shares of the company have gained 7.1%.

Ferrari has an expected long-term growth rate of 17.3%. Over the past year, shares of the company have gained 57.3%.

Fox Factory has an expected long-term growth rate of 11.5%. Shares of the company have risen 28.1% over the past year.

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