Source: EnPro announcement
CHARLOTTE, N.C.– EnPro Industries, Inc. (NYSE: NPO) has agreed to sell all assets related to the STEMCO Motor Wheel® brake drum and Crewson® brake adjuster brands to Hendrickson USA, LLC. The sale is expected to close in the third quarter of 2020 and is subject to typical closing conditions.
“After announcing the exit of STEMCO’s Motor Wheel® brake drum and Crewson® brake adjuster brands on June 25th, we were pleased to receive an offer from Hendrickson to purchase the assets and to continue operating the business,” said Marvin Riley, president and chief executive officer. “This transaction represents a positive outcome for all stakeholders as it preserves the jobs of our workforce and mitigates customer disruptions while providing EnPro’s shareholders a fair valuation for the assets of the business.
“On behalf of the entire EnPro organization, I want to express our great appreciation for the many contributions that our colleagues at STEMCO’s Motor Wheel® and Crewson® businesses have made to EnPro.
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“The sale of this business supports our journey of reshaping our portfolio towards businesses with compelling margins, leading technology, and high cash flow return on investment in markets with favorable secular tailwinds; maintaining a balanced approach to capital allocation; increasing aftermarket exposure and recurring revenue opportunities; and leveraging the EnPro Operating System for continuous improvement to increase margins and cash flow return on investment.”
During the second quarter, in connection with the decision to exit this business, the company recorded related restructuring and impairment charges of $11.1 million. Upon the expected completion of the sale during the third quarter, EnPro anticipates reversing $3.7 million of the cash restructuring charges recorded in the second quarter and recording a loss on sale of the business of approximately $4.4 million, for a pretax loss in the third quarter of approximately $0.7 million.
About EnPro Industries
EnPro Industries, Inc. is a niche provider of precision components, solutions, and services with a well-diversified customer base. For more information about EnPro, visit the company’s website at https://www.enproindustries.com.