TROY, Mich. (AP) -- ArvinMeritor Inc. said Monday that it completed the sale of its wheels business to Iochpe-Maxion SA for $180 million.
Iochpe-Maxion is a Brazilian maker of wheels and frames for commercial vehicles, railway freight cars and castings.
ArvinMeritor said net proceeds from the sale -- which totaled $169 million -- will go toward paying down the balances on its revolving credit facility before the end of its fiscal fourth quarter. The deal was first announced Aug. 4.
The company, which makes truck axles, brakes and transmissions, expects to use the net proceeds to reduce outstanding balances on its revolving credit facility in advance of its fourth fiscal quarter end. ArvinMeritor repeated its earlier expectation that it will be in compliance with its financial covenant in that quarter.
ArvinMeritor shares added 10 cents to $8.21 in aftermarket trading, having closed the regular session at $8.11.
