The spinoff of the LVS business – now named Arvin Innovation Inc. – will be accomplished through a pro rate tax-free dividend to ArvinMeritor shareholders, a move that will place 100% of the new company’s stock directly in shareholders’ hands. The company plans to complete the move within 12 months.
"The plan to separate our two businesses is the result of a comprehensive strategic review to enhance the company’s long-term value for our shareholders," said Chip McClure, chairman, CEO and president. "We are confident that this transaction will not only unlock shareholder value, but will also significantly strengthen the competitive positions of both companies and better align them with their respective customer bases.
"Our decision to spin off the LVS business is part of the company’s ongoing corporate transformation – our 3R strategy to rationalize, refocus and regenerate – that has been underway for the last three years," McClure said. "Separating these two businesses and successfully implementing our Performance Plus initiatives are major steps in the transformation to build two stronger, more competitive companies for the future.”
McClure will remain as ArvinMeritor’s chairman, CEO and president. James Marley, currently an ArvinMeritor board member, will head Arvin Innovation’s board of directors as non-executive chairman. Phil Martens, currently ArvinMeritor’s senior vice president and president of LVS, will become the president and CEO of Arvin Innovation.
ArvinMeritor will remain headquartered in Troy, Mich., while Arvin Innovation will be based in Detroit at the current location of the LVS Detroit Technology Center. Arvin Innovation will retain its other offices in Europe, Asia Pacific and South America. (Tire Review/Akron)
