GASTONIA, N.C. — Aftermarket automotive parts maker Affinia Group Inc. has signed agreements to sell the Brazilian operations of its Affinia South America (ASA) business, which makes up approximately 90 percent of ASA's sales.
“The divestiture of these businesses gives us greater opportunity to focus on our Global Filtration segment, executing on our strategic initiatives to produce the best performing, most reliable filters in the world,” said Keith Wilson, Affinia's president and CEO.
“We extend our appreciation to the individuals within the ASA team who helped lead and grow the businesses over the years, and wish them all continued success.”
The divestiture, which is subject to regulatory approval and customary closing conditions, is expected to close in the second half of this year, according to the company.
Steven Klueg, senior vice president and chief financial officer of Affinia, said proceeds from the sale “will be used to reduce our debt levels and further strengthen our balance sheet.”
Affinia did not specify how many employees the Brazilian ASA unit has, what will happen to them, or if it had a buyer for the business.
Gastonia-based Affinia designs, manufactures, distributes and markets industrial grade products and services, including aftermarket parts for automotive and heavy-duty vehicles.
The company said it has approximately $1.4 billion in annual revenue, with operations in North and South America, Europe and Asia.