Prestolite To Sell Two Business Units
January 24, 2000
Prestolite Electric will sell two businesses in order to reduce debt and to focus more attention on its key automotive and heavy-duty markets.
The company says it will sell its direct current motor business including plants in the U.S. and England. It will retain other businesses at those facilities, including a switch operation in Decatur, AL, and heavy-duty starter and alternator remanufacturing and warehousing operation in Leyland, England.
The second business for sale is Prestolite's battery charger operation which produces chargers for the material handling marked under the Hobart name.
Prestolite's alternator, starter motor and switching devices are sold under the Prestolite, Leece-Neville and Indiel brand names.
The company has also closed its technical center in Ann Arbor, MI, and transferred responsibility for development projects in process to division engineering centers in Decatur, AL, and Arcade, NY. Those projects include development of integrated electrical system controls for heavy duty trucks.
Prestolite has announced that 1999 financial results are expected to be below expectations, including an estimated 8% drop in total sales, to approximately $259 million.