ArvinMeritor has completed the previously announced sale of its wheels business – once a division of its light vehicle systems segment – to Iochpe-Maxion, the Brazilian producer of wheels and frames for commercial vehicles, railway freight cars and castings, for around US$180m.
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The supplier said it would use net proceeds of $169m from the sale to reduce outstanding balances on its revolving credit facility before the end of the fourth fiscal quarter.
ArvinMeritor also reiterated it would continue to comply with its financial covenant in the quarter.
“We are pleased to have completed this transaction, which represents another step forward in our transformation to becoming a global commercial vehicle and industrial company with a focus on expanding our leadership position in both the on- and off-highway equipment and machinery markets,” said chairman, CEO and president Chip McClure.
“We look forward to using the proceeds from this sale to further strengthen our balance sheet and to invest in areas that will help us grow our core business and deliver value to our shareholders.”
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