ArvinMeritor Divests Ownership Stakes in Two Light Vehicle Systems Chassis Businesses
June 24 2009 - 9:00PM
PR Newswire (US)
TROY, Mich., Jun. 24 /PRNewswire-FirstCall/ -- ArvinMeritor, Inc.
(NYSE: ARM) today announced that it has reached agreements to
divest its entire ownership stakes in two joint ventures in its
light vehicle Chassis business. Together, these transactions will
result in the divestiture of 45 percent of the Chassis Systems
business (as measured by 2008 sales). The company entered into a
binding letter of intent to sell its 57 percent stake in Meritor
Suspension Systems Company ("MSSC"), a joint venture that
manufactures and sells automotive coil springs, torsion bars and
stabilizer bars in North America, to its joint venture partner, a
subsidiary of Mitsubishi Steel Mfg. Co., LTD (MSM). The transaction
is expected to close in the coming months, after receiving
necessary regulatory clearances. ArvinMeritor also announced that,
earlier this month, it completed the sale of its 51 percent stake
in Gabriel de Venezuela, which manufactures shock absorbers,
struts, exhaust systems and suspension modules for countries
including Venezuela, Colombia, Chile, Bolivia, Peru and Ecuador.
"We are pleased to announce these two divestitures, which represent
important steps toward achieving our long-term strategic objective
to focus on supplying the commercial vehicle on- and off-highway
markets for both original equipment manufacturers and aftermarket
customers," said Chip McClure, chairman, CEO and president. "Our
joint venture partners are strong companies and I am confident that
they will focus on growing these businesses. We continue to
concentrate on divesting the light vehicle Chassis business, and we
are pleased with the high level of interest we are continuing to
see from potential buyers in the remaining segments of that
business." About ArvinMeritor ArvinMeritor, Inc. is a premier
global supplier of a broad range of integrated systems, modules and
components to the motor vehicle industry. The company marks 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 more information, visit the company's Web site at:
http://www.arvinmeritor.com/. Forward-Looking Statements This press
release contains statements 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,
including the recent global economic crisis; whether our liquidity
will continue to be affected by declining vehicle production
volumes in the future; the financial condition of the company's
suppliers and customers, including bankruptcies and potential
bankruptcies; possible adverse effects of any future suspension of
normal trade credit terms by our suppliers; 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 demand for commercial,
specialty and light vehicles for which the company supplies
products; timing and certainty as to completion and terms of any
dispositions of the Body Systems and Chassis businesses of
ArvinMeritor's LVS business; 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 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; 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; potential adjustment of the value of deferred tax assets;
competitive product and pricing pressures; the amount 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.
(Logo: http://www.newscom.com/cgi-bin/prnh/20010524/ARVINLOGO )
http://www.newscom.com/cgi-bin/prnh/20010524/ARVINLOGODATASOURCE:
ArvinMeritor, Inc. CONTACT: Media, Lin Cummins, +1-248-435-7112, ,
or Investors, Terry Huch, +1-248-435-9426, Web Site:
http://www.arvinmeritor.com/
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