Meritor to Sell 50% Stake in Brazilian Joint Venture

Before you go, we thought you'd like these...
Before you go close icon

In an effort to strengthen its balance sheet, auto-parts supplier Meritor agreed to sell the 50% stake it has in a Brazilian joint venture for $195 million in cash and other consideration.

Meritor's investment in Suspensys Sistemas Automotivos joint venture was started in 2002 and was primarily engaged in the manufacture and sale of air and mechanical suspension systems for trucks, buses, and trailers, as well as trailer axles, third axles, hubs, and drums.

Because the auto-parts supplier remains committed to its trailer business in North America and expects to continue supplying its customers in the region, Meritor Chairman, CEO, and President Chip McClure said, "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."


The joint venture contributed $28 million in revenues for Meritor's fiscal 2012, down 12.5% from the year-ago period. The sale is expected to be consummated by Meritor's fiscal year end and is subject to regulatory approvals and other customary conditions.

The article Meritor to Sell 50% Stake in Brazilian Joint Venture originally appeared on Fool.com.

Fool contributor Rich Duprey and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners