TROY, Mich., Aug 03, 2010 /PRNewswire via COMTEX/ --
ArvinMeritor, Inc., (NYSE: ARM) today announced that it has reached an agreement to sell its Body Systems business to an affiliate of Inteva Products, LLC, a wholly owned subsidiary of The Renco Group, Inc. The transaction is subject to regulatory approvals and other customary closing conditions. The purchase price is approximately $35 million, including deferred consideration and excluding potential adjustments for items such as working capital fluctuations. Houlihan Lokey and UBS Investment Bank are financial advisors to ArvinMeritor on the transaction.
"With this transaction, we are now able to fully focus on our core businesses of Commercial Truck, Industrial and Aftermarket & Trailer," said Chip McClure, ArvinMeritor chairman, CEO and president. "Finalizing this agreement is an important milestone for us and underscores our commitment to building value for ArvinMeritor's shareholders."
When complete, the divestiture will affect more than 5,000 employees at facilities in 14 countries, and will substantially complete the sale of ArvinMeritor's Light Vehicle Systems business.
About Inteva Products, LLC
Inteva Products, LLC has more than 90 years of experience and expertise, empowering some of the best minds in the industry with global resources supported by a team at 18 facilities on three continents. Inteva designs, engineers, manufactures, and assembles Interior Systems, Cockpits, Latch and Closure Systems, Door Module and Window Lift Systems for leading OEMs around the globe. Inteva's integration capabilities provide everything from small component parts to fully integrated vehicle subsystems. Inteva is committed to execute to the highest level possible for all customers to create solutions that meet quality and technical specifications while remaining on time and on budget. For more information visit www.intevaproducts.com.
ArvinMeritor, Inc. is a premier global supplier of a broad range of integrated systems, modules and components to original equipment manufacturers and the aftermarket for the transportation and industrial sectors. The company marked its centennial anniversary in 2009, celebrating a long history of 'forward thinking.' The company serves commercial truck, trailer and specialty original equipment manufacturers and certain aftermarkets, and light vehicle manufacturers. ArvinMeritor common stock is traded on the New York Stock Exchange under the ticker symbol ARM. For important information about the company, visit the company's Web site at: http://www.arvinmeritor.com.
This press release contains statements relating to future results of the company (including certain projections and business trends) that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by words or phrases such as "believe," "expect," "anticipate," "estimate," "should," "are likely to be," "will" and similar expressions. There are risks and uncertainties relating to the company's announced plans to sell the Body Systems business of LVS, including the timing and certainty of completion of the sale and the fulfillment of closing conditions, some of which may not be within the company's control. Until the closing of any sale, the company will be responsible for the operation of this business. Therefore, it is possible that an extended process could result in operating losses and cash requirements for which the company would be responsible, especially if economic conditions begin again to destabilize. In addition, although the company currently expects to sell the entire business, if the company fails to do so, the company may consider other available options, including restructurings and multiple sales of portions of the business (which may involve substantial costs and the potential to lose new or replacement customer awards due to the uncertainty as to the future of the business). In addition, actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to global economic and market cycles and conditions, including the recent global economic crisis; the demand for commercial, specialty and light vehicles for which the company supplies products; risks inherent in operating abroad (including foreign currency exchange rates and potential disruption of production and supply due to terrorist attacks or acts of aggression); whether our liquidity will be affected by declining vehicle production volumes in the future; availability and sharply rising cost of raw materials, including steel and oil; OEM program delays; demand for and market acceptance of new and existing products; successful development of new products; reliance on major OEM customers; labor relations of the company, its suppliers and customers, including potential disruptions in supply of parts to our facilities or demand for our products due to work stoppages; the financial condition of the company's suppliers and customers, including potential bankruptcies; possible adverse effects of any future suspension of normal trade credit terms by our suppliers; potential difficulties competing with companies that have avoided their existing contracts in bankruptcy and reorganization proceedings; successful integration of acquired or merged businesses; the ability to achieve the expected annual savings and synergies from past and future business combinations and the ability to achieve the expected benefits of restructuring actions; the ability to achieve anticipated or continued cost savings from reduction actions; success and timing of potential divestitures; potential impairment of long-lived assets, including goodwill; potential adjustment of the value of deferred tax assets; competitive product and pricing pressures; the amount of the company's debt; the ability of the company to continue to comply with covenants in its financing agreements; the ability of the company to access capital markets; credit ratings of the company's debt; the outcome of existing and any future legal proceedings, including any litigation with respect to environmental or asbestos-related matters; the outcome of actual and potential product liability and warranty and recall claims; rising costs of pension and other post-retirement benefits and possible changes in pension and other accounting rules; as well as other risks and uncertainties, including but not limited to those detailed from time to time in filings of the company with the SEC. These forward-looking statements are made only as of the date hereof, and the company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as otherwise required by law.
All earnings per share amounts are on a diluted basis. The company's fiscal year ends on the Sunday nearest Sept. 30, and its fiscal quarters end on the Sundays nearest Dec. 31, March 31 and June 30. All year and quarter references relate to the company's fiscal year and fiscal quarters, unless otherwise stated.
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SOURCE ArvinMeritor, Inc.