ArvinMeritor Inc.’s sale of its body systems division to Inteva Products has been completed. The deal, which amounts to $27.3 million, includes $12.3 million in cash and a promissory note for $15 million, according to a statement from ArvinMeritor. Last August, the company revealed plans to sell its body systems division to Inteva for $35 million.
This sale is in line with ArvinMeritor’s plan to concentrate on commercial trucks and to leave the light vehicle business. In this press release, CEO Chip McClure said that the company considers the completion of this sale to be “an important milestone.”
He added that the transaction “completes [its] transformation” and will advance its ability to reach its financial goals as the core operations in the global commercial vehicle and industrial markets is strengthened.
In the fourth quarter of its 2010 fiscal year (ending on Sept. 30), ArvinMeritor recorded a net income of $2 million on revenue of $956 million, getting back on the black from a $14 million net loss on revenue of $697 million the year before.
ArvinMeritor also pointed out that its profits grew because of the rising demand for trucks in North America and Europe. Inteva, which is also based in Detroit, is a wholly owned subsidiary of Renco Group Inc. Inteva produces instrument panels, consoles, cockpits and door closures.
Two years ago, Renco Group acquired Inteva from Delphi Corp. Inteva’s products will now include sunroofs, motors and electronics, after having acquired ArvinMeritor’s body systems division. ArvinMeritor supplies drivetrain, suspension and chassis components and systems. [via autonews - sub. required]