Commercial Vehicle Group Completes Sale of Cab Structures Business

Rhea-AI Summary

Commercial Vehicle Group (CVG) (NASDAQ: CVGI) has completed the sale of its Cab Structures business in Kings Mountain, North Carolina to a Volvo Group company. The transaction, effective October 1, 2024, resulted in a total payment of $40 million to CVG, with $20 million received on September 6, 2024, and the remaining $20 million on October 1, 2024.

CVG's President and CEO, James Ray, described the sale as a positive transaction for both companies, aligning with CVG's strategic transformation plan to optimize its portfolio towards higher-growth products and markets. The company expressed confidence that the Kings Mountain employees would benefit from integration into their customer's operations. Both CVG and Volvo have committed to ensuring a smooth transition for customers, suppliers, and employees.

Positive

• Received $40 million from the sale of Cab Structures business
• Aligns with strategic transformation plan to focus on higher-growth products and markets
• Optimizes company portfolio

Negative

• Divestiture of a business unit may impact overall revenue

NEW ALBANY, Ohio, Oct. 02, 2024 (GLOBE NEWSWIRE) -- Commercial Vehicle Group (the “Company” or “CVG”) (NASDAQ: CVGI), a diversified industrial products and services company, announced it has completed the sale, effective October 1, 2024, of its Cab Structures business with operations in Kings Mountain, North Carolina to a Volvo Group company. As part of the sale, CVG received a total of $40 million, with $20 million received on September 6, 2024, and the remaining $20 million received on October 1, 2024.

James Ray, President and CEO of CVG, stated, “This is a positive transaction for both companies and supports CVG’s efforts to optimize our portfolio toward higher-growth products and markets in line with our ongoing strategic transformation plan. We’re happy to see the plant in good hands as Kings Mountain employees will benefit from being integrated into their customer’s operations. We’re grateful for their contributions to CVG over the years.”

CVG and Volvo are committed to a smooth transition for our customers, suppliers, and the employees.

About CVG

At CVG, we deliver real solutions to complex design, engineering and manufacturing problems while creating positive change for our customers, industries, and communities we serve. Information about CVG and its products is available at www.cvgrp.com.

Investor Relations Contact:
Ross Collins or Stephen Poe
Alpha IR Group
CVGI@alpha-ir.com

Media Contact:
Patrick Woolford
Director, Communications
Patrick.Woolford@cvgrp.com

FAQ

What business did Commercial Vehicle Group (CVGI) sell?

Commercial Vehicle Group (CVGI) sold its Cab Structures business with operations in Kings Mountain, North Carolina.

How much did Commercial Vehicle Group (CVGI) receive for the sale of its Cab Structures business?

Commercial Vehicle Group (CVGI) received a total of $40 million for the sale of its Cab Structures business.

When was the sale of CVGI's Cab Structures business completed?

The sale of CVGI's Cab Structures business was completed effective October 1, 2024.

Who purchased Commercial Vehicle Group's (CVGI) Cab Structures business?

A Volvo Group company purchased Commercial Vehicle Group's (CVGI) Cab Structures business.