Drivetrain, mobility, braking and aftermarket applications supplier Meritor has signed a purchase and sale agreement with its joint venture (JV) partner Randon Implementos E Participacoes.
Under the deal, the company will sell its 50% ownership interest in Suspensys Sistemas Automotivos for $195m cash and other consideration.
Expected to be completed by Meritor's fiscal year end, the agreement is subjected to regulatory approvals and other customary conditions.
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."
Formed in 2002, the Suspensys Sistemas Automotivos JV manufactures and sells air and mechanical suspension systems for trucks, buses and trailers, trailer axles, third axles, hubs and drums for trucks, buses and trailers
