EDMONTON, Alta. — McCoy Bros. Inc. is planning to sell off its oldest manufacturing division in a proposed management buyout.
The company has signed a non-binding letter of intent to sell off the assets of its spring and axle division, with purchasers paying book value for capital assets of McCoy’s spring and axle business. Inventory would be consigned for resale to customers.
McCoy also plans to sell off the shares of its McCoy Bros. Group Inc. subsidiary in Rancho Cucamonga, Calif. The wholly owned subsidiary is a distribution outlet for various suspension products.
Company President and Chief Executive Officer Jim Rakievich says the spring and axle division has “become less central to the company’s plans” and the timing was right for both sales. He said the spring and axle division buyout will allow McCoy to concentrate on growth opportunities such as its new truck and trailer service facility in Edmonton.
Rakievich said the management buyout proposals were attractive because there won’t be any job losses as a result. The two transactions are expected to be completed by March 14.
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