Boston, MA 09/30/2014 (wallstreetpr) – A global supplier of integrated systems and components, Meritor Inc (NYSE:MTOR) disclosed that it has completed the process of sale of its Mascot operations in both Canada, as well as, the U.S. to an investor group.
Sale Completed
The company said that the new entity would be under operations with the name christened as Mascot Industries LLC, its statement revealed. It clarified that all other operations of trailer axle and brake remanufacturing and distribution business would continue to operate as in the past and would not get impacted by the sale process.
Meritor Inc (NYSE:MTOR) said that it produced remanufactured manual and auto transmissions, drivelines, differentials, power steering pumps, and steering gears under the brand Mascot that was sold to an investor group. Therefore, its branded transmissions and differentials would continue to be available.
As per the sale agreement, Meritor Inc (NYSE:MTOR) said that Plainfield, Indiana, employees, who were involved in remanufacturing of drivetrain such as steering, transmissions, and differentials, would be transferred to Mascot Industries. Similarly, about 25 employees of Brampton, Ontario, Canada, would also be inducted into the new organization. It indicated that branches of Mascot in Canada like Moncton, New Brunswick, Edmonton, Alberta, Quebec, and Boucherville would be closed. As a result, about 39 employees would be affected.
Management Speaks
Meritor Inc (NYSE:MTOR) VP of Aftermarket and Trailer, Craig Frohock, said that the decision to divest Mascot was the right choice for both its customers, as well as, the company. The divestment would allow the company to retain its position as an OES supplier for its customers and at the same time focus on growing in selected areas where there was opportunities to lift its value for both its customers and shareholders.
Similarly, Mascot Industries President, Bill Statham, said that it was excited to buy a respected brand of many years, Mascot, in both the U.S. and Canadian drivetrain marketplace. It was looking forward to growing the business.
