TROY, Mich., June 20 /PRNewswire-FirstCall/ -- ArvinMeritor, Inc. 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 product portfolio."
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/ .
About ArvinMeritor
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: http://www.arvinmeritor.com/ .
Forward-Looking Statements
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.
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