ArvinMeritor Inc. (NYSE:ARM) has sold auto parts supplier Gabriel North America to private equity firm OpenGate Capital for an undisclosed amount. Gabriel makes shock absorbers and strut assemblies for the after-market and original equipment manufacturer segments.
The deal is part of
ArvinMeritor's strategy to exit the light vehicle market and refocus on its commercial vehicle business. The sale of Gabriel NA completes a trifecta of deals announced in less than a week. On June 25, the company reached agreements to divest its entire ownership stakes in two joint ventures in its light-vehicle chassis business. As or sister blog
Dealscape
reported, ArvinMeritor sold its 57% stake in a vehicle suspension unit to
joint venture partner Mitsubishi Steel Manufacturing Co. along with a
51% stake in Gariel de Venezuela.
The company's original plan was to
spin off the light-vehicle parts business in its entirety, a strategy announced in May 2008. By October, however, the company announced that while a spinoff was still an option, it was also investigating other alternatives. Eventually, the light-vehicle business was restructured into three divisions, which may have helped facilitate the recent sales.
While ArvinMeritor continues faces a daunting and fast-changing marketplace, it's commendable the company was able to achieve its objective -- even if it took some strategic retooling to get there.
- Suzanne Stevens
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