Meritor to sell stake in Brazilian partnership
Meritor, Inc. announced Tuesday it has signed an agreement to sell its 50 percent ownership interest in Suspensys Sistemas Automotivos LTDA to its partner in the venture, Randon S.A. Implementos E Participações for $195 million in cash and other considerations.
The agreement is subject to regulatory approvals and other customary conditions and is expected to be finalized by Meritor’s fiscal year end.
“We are pleased to have entered into this agreement and look forward to using the proceeds from the sale to support our continued efforts to strengthen our balance sheet,” said Chip McClure, Chairman, CEO and President of Meritor.
The Suspensys Sistemas Automotivos joint venture was formed in 2002 to manufacture and sell air and mechanical suspension systems for trucks, buses and trailers, trailer axles, third axles, hubs and drums for trucks, buses and trailers.