ArvinMeritor Inc. (ARM) completed the sale of its remaining auto parts division, effectively ending a four-year restructuring effort aimed at returning the company to profitability by tying its future to the commercial truck industry.
The producer of parts for commercial vehicles sold its body systems business to Inteva Products LLC for about $27.3 million, consisting of $12.3 million in cash and a promissory note for $15 million. The transaction, which affects more than 4,100 employees in 16 countries, was initially announced in August.
"This 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," said ArvinMeritor Chairman and Chief Executive Chip McClure.
McClure has been remaking ArvinMeritor by selling off divisions and closing plants since 2007. His goal has been to streamline the company during a time of great upheaval in the auto-parts industry.
ArvinMeritor has seen positive volume trends of late in Europe and North America as the automotive market has improved. Results suffered last year when vehicle production was slashed because of slack demand.
In November, the company reported it swung to a fiscal fourth-quarter profit on a pension gain as sales jumped and margins improved.
Shares were up a penny to $20.86 in after-hours trading. The company's stock has rallied for nearly two years, after falling under $1 in March 2009.
-By John Kell, Dow Jones Newswires; 212-416-2480; email@example.com
(Jeff Bennett contributed to this report.)