CHICAGO -- Auto parts supplier ArvinMeritor Inc. on Thursday said it plans to divest its light-vehicle aftermarket and roll coater coil coating business groups to focus on supporting automakers.
The Troy, Mich., company said it will take a noncash goodwill impairment charge of $190 million, or $2.77 a share, in the fiscal fourth quarter related to the aftermarket unit.
ArvinMeritor said it plans to use the proceeds of the sales to strengthen the balance sheet and selectively reinvest in its core business segments. It expects to complete the divestitures during the 2005 fiscal year.
"These divestitures will enable ArvinMeritor to leverage our core competencies in the global automotive and commercial truck markets," ArvinMeritor CEO Charles McClure said in a statement. "We believe these decisions are necessary steps to improve our financial flexibility and strengthen our long-term profitability."
The company will report both businesses as discontinued operations when it reports fourth-quarter earnings on Nov. 15. The coil coating business is a wholly owned subsidiary.
Lehman Brothers has been retained as an adviser for the light-vehicle unit sale, ArvinMeritor said.