TROY, Mich., June 20 /PRNewswire-FirstCall/ -- ArvinMeritor, Inc.
(NYSE: ARM) today announced the sale of Gabriel South Africa, its Light
Vehicle Aftermarket (LVA) Ride Control business in Cape Town -- which includes
the sale of the Gabriel trademark in designated African countries -- to
Control Instruments Group Limited, which is listed on the JSE Limited in South
Africa. The cash purchase price of the transaction is approximately $12
million, which does not include the land and buildings that are being retained
by ArvinMeritor. The sale is subject to regulatory approvals.
"This sale is part of our plan to divest non-core businesses and assets,"
said Chip McClure, ArvinMeritor chairman, CEO and president. "Going forward,
we will continue to focus resources and capital on those areas that produce
the highest returns for us and create the best strategic fit with our existing
This divestiture affects approximately 400 employees at the Cape Town
facility. McClure added, "Gabriel South Africa is joining a company that can
fully leverage its capabilities. We wish our longtime LVA associates much
success in their future with Control Instruments Group."
ArvinMeritor's light vehicle emissions technologies business, housed at
the same location, is not included in or affected by the sale.
About Control Instruments Group Limited
Control Instruments' subsidiaries develop, engineer, manufacture and
distribute products and services for niche sectors of worldwide automotive and
transportation industries, including the Original Equipment Manufacturer (OEM)
motor industry; commercial vehicle and fleet management markets; and a range
of products that are supplied to the automotive aftermarket.
The Group has been listed on the JSE Limited since 1987, trading under the
share code "CNL." It employs approximately 1,300 people. For more information,
visit the Group's Web site at http://www.ci.co.za .
ArvinMeritor, Inc. is a premier $8.8 billion global supplier of a broad
range of integrated systems, modules and components to the motor vehicle
industry. The company serves light vehicle, commercial truck, trailer and
specialty original equipment manufacturers and certain aftermarkets.
Headquartered in Troy, Mich., ArvinMeritor employs approximately 29,000 people
at more than 120 manufacturing facilities in 25 countries. ArvinMeritor common
stock is traded on the New York Stock Exchange under the ticker symbol ARM.
For more information, visit the company's Web site at:
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. 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; 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);
availability and cost of raw materials, including steel; 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; success and
timing of potential divestitures; potential impairment of long-lived assets,
including goodwill; 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; 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.
SOURCE ArvinMeritor, Inc.
both of ArvinMeritor, Inc.