In the latest shakeup in the auto parts industry, billionaire investor Carl Icahn is selling Federal-Mogul to Tenneco for $5.4 billion a year after taking complete control of the company.

Auto parts have been a major focus for Icahn, who also owns Pep Boys and many of the assets of Uni-Select USA. With the sale of Federal-Mogul announced Tuesday, he will receive $800 million in cash and 29.5 million shares of Tenneco.

Upon completion of the deal, Tenneco plans to split into two companies, one focused on aftermarket and ride performance products and another geared toward powertrain technology. It sells products under brands such as Monroe, Walker and XNOx.

“This is a landmark day for Tenneco with an acquisition that will transform the company by creating two strong leading global companies, each in an excellent position to capture opportunities unique to their respective markets,” Tenneco CEO Brian Kesseler said in a news release.

“Federal-Mogul brings strong brands, products and capabilities that are complementary to Tenneco’s portfolio and in line with our successful growth strategies,” he added. “Unleashing two new product focused companies with even stronger portfolios will allow them to move faster in executing on their specific growth priorities.”

As Reuters reports, the deal “is the latest in a series of corporate restructurings or spinoffs in the auto supplier industry, as investors press for more focused companies.”

The new company consisting of Tenneco Clean Air and Federal-Mogul Powertrain “will likely benefit from the fact that internal combustion engine parts and tailpipe exhaust scrubbing technology will be needed by automakers for a long time to come, before they can be replaced by newer technologies such as fully electric cars,” Reuters said.

Icahn’s interest in Federal-Mogul goes back to 2001 when he bought convertible bonds for $1.1 billion. He took the company private last year after buying the remaining 18% he did not already own.

“I am very proud of the business we have built at Federal-Mogul and agree with Tenneco regarding the tremendous value in the business combination and separation into two companies,” he said Tuesday.

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