ATC Technology sells UK drivetrain business; renews Ford contract through 2012
By APWednesday, May 12, 2010
ATC Technology sells UK business
DOWNERS GROVE, Ill. — ATC Technology has sold a drivetrain business in the United Kingdom, a move that will lead to a $5.5 million loss, the vehicle remanufacturing and logistics company said Tuesday.
The company also said it renewed its contract with Ford in North America through 2012. Terms weren’t released for the contract, which covers the remanufacturing of transmissions for Ford.
ATC Technology said it sold its Drivetrain business to two senior members of the local management team. The company did not give a specific sales price.
“The U.K.-based drivetrain business contributed $11.9 million of revenue in 2009 with a corresponding loss from continuing operations of $2.3 million,” said CEO and President Todd Peters. “The sale price was less than the net book value of the assets of the business.”
The sale will lead to loss of 28 cent-per share in the second quarter.
Shares of ATC Technology Corp. rose 41 cents, or 2.1 percent, to $19.78.
