Meritor Announces Agreement to Sell Ownership Stake in Brazilian Joint Venture
TROY, Mich., April 29, 2013
TROY, Mich., April 29, 2013 /PRNewswire-FirstCall/ --Meritor, Inc. (NYSE:
MTOR) today announced it has signed a purchase and sale agreement to sell its
50 percent ownership interest in Suspensys Sistemas Automotivos LTDA to its
joint venture partner Randon S.A. Implementos E Participacoes. The purchase
price for Meritor's ownership interest is $195 million in cash and other
consideration. The agreement is subject to regulatory approvals and other
customary conditions. The sale is expected to be consummated 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 and is
primarily engaged in the manufacture and sale of air and mechanical suspension
systems for trucks, buses and trailers, trailer axles, third axles, hubs and
drums for trucks, buses and trailers.
Meritor remains committed to its trailer business in North America and expects
to continue supplying its customers in the region with a series of
high-quality trailer products.
Meritor, Inc. is a leading global supplier of drivetrain, mobility, braking
and aftermarket solutions for commercial vehicle and industrial markets.With
more than a 100-year legacy of providing innovative products that offer
superior performance, efficiency and reliability, the company serves
commercial truck, trailer, off-highway, defense, specialty and aftermarket
customers in more than 70 countries. Meritor is based in Troy, Mich., United
States, and is made up of more than 9,000 employees who apply their knowledge
and skills in manufacturing facilities, engineering centers, joint ventures,
distribution centers and global offices in 19 countries. Meritor's common
stock is traded on the New York Stock Exchange under the ticker symbol MTOR.
For important information, visit the company's website at meritor.com.
Forward Looking Statements
This press release contains statements relating to future results of the
company (which may include 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 failure to receive the regulatory
approvals required to complete the sale of our ownership stake in the
Suspensys joint venture or to otherwise successfully complete the sale of such
ownership stake; reduced production for certain military programs and our
ability to secure new military programs as our primary military programs wind
down by design in future years; reliance on major original equipment
manufacturer ("OEM") customers and possible negative outcomes from contract
negotiations with our major customers, including failure to negotiate
acceptable terms in contract renewal negotiations; our ability to successfully
manage rapidly changing volumes in the commercial truck markets and work with
our customers to adjust their demands in view of rapid changes in production
levels; global economic and market cycles and conditions; availability and
sharply rising costs of raw materials, including steel, and our ability to
manage or recover such costs; our ability to manage possible adverse effects
on our European operations, or financing arrangements related thereto, in the
event one or more countries exit the European monetary union; risks inherent
in operating abroad (including foreign currency exchange rates, implications
of foreign regulations relating to pensions and potential disruption of
production and supply due to terrorist attacks or acts of aggression); as well
as other substantial costs, risks and uncertainties, including but not limited
to those detailed herein and from time to time in other filings of the company
with the SEC. See also the following portions of our Annual Report on Form
10-K for the year ended September 30, 2012: Item 1. Business , "Customers;
Sales and Marketing"; "Competition"; "Raw Materials and Supplies";
"Employees"; "Environmental Matters"; "International Operations"; and
"Seasonality; Cyclicality"; Item 1A. Risk Factors ; Item 3. Legal Proceedings
; and Item 7. Management's Discussion and Analysis of Financial Condition and
Results of Operations . 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.
SOURCE Meritor, Inc.
Contact: Media Inquiries: Krista Sohm, (248) 435-7115,
firstname.lastname@example.org; Investor Inquiries: Christy Daehnert, (248) 435-9426,
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