ArvinMeritor has closed the deal to sell its wheels business to Iochpe-Maxion, S.A., a Brazilian producer of wheels and frames for commercial vehicles, railway freight cars and castings, for approximately $180 million.

The net proceeds of the sale of $169 million will go toward reducing the company's outstanding balances on its revolving credit facility in advance of its fiscal fourth quarter end. The company expects to remain in compliance with its financial covenant in the fourth quarter.

"We look forward to using the proceeds from this sale to further strengthen our balance sheet and to invest in areas that will help us grow our core business and deliver value to our shareholders," said Chip McClure, ArvinMeritor's chairman, CEO and president.