Auto supplier ArvinMeritor Inc. has completed the sale of its body systems division to Inteva Products, the companies said.
The $27.3 million deal includes $12.3 million in cash and a promissory note for $15 million, ArvinMeritor said Monday in a release.
In August, ArvinMeritor, a suburban Detroit supplier of drivetrain, suspension and chassis components and systems, said it planned to sell its body systems business to Inteva for about $35 million. The sale is part of the supplier's plan to exit the light vehicle business to focus on commercial trucks.
“Completing this sale is an important milestone for ArvinMeritor,” CEO Chip McClure said in the release. “The transaction completes our transformation, and will further our ability to achieve our financial goals with the continued strengthening of our core operations in the global commercial vehicle and industrial markets.”
ArvinMeritor posted net income of $2 million on revenue of $956 million in the fourth quarter of its 2010 fiscal year, which ended Sept. 30, swinging to the black from a $14 million net loss on revenue of $697 million a year earlier.
At the time, the company credited a growing demand for trucks in North America and Europe for its profits.
Inteva, also of suburban Detroit, is a wholly owned subsidiary of Renco Group Inc. Inteva makes instrument panels, consoles, cockpits and door closures. Renco Group acquired Inteva from Delphi Corp. two years ago. With the addition of ArvinMeritor's body systems division, Inteva's products also will include sunroofs, motors and electronics.
The deal helps Inteva expand globally, CEO Lon Offenbacher said in a separate release.
“Our expanded footprint and product portfolio greatly enhances our business with a stronger presence in Europe, Asia and the Americas,” he said. “Our overall business is now more balanced among our global customers and we are strategically located in the regions where growth is expected.”
With the acquisition, Inteva says it has a global work force of 8,000 employees at 43 sites in 18 countries.
According to ArvinMeritor, the divestiture will affect more than 4,100 employees in 16 countries.