Milwaukee-based Jason Industries Inc. completed the sale of its Acoustics European operations for $10 million in the third quarter, the company announced today. The buyer was not disclosed.
Jason, which operates manufacturers in the seating, finishing, components and automotive acoustics markets, said in November 2016 it would seek to sell the business. Jason then indicated in an August earnings report it would be exiting two non-core businesses as it works to reduce costs. The company described its second quarter results, with a net loss of $2.4 million, as “disappointing.”
Jason received $7 million in net cash proceeds after foreign debt retirement and closing costs. With the sale of the Acoustics European operation, the Acoustics division will lose $30 million in annual revenue the company says was dilutive to the business. It will instead focus on expanding margins and growing its core North American market.
The company also sold its Richmond, Virginia Finishing manufacturing plant for $2.1 million. Jason will consolidate those operations into its Richmond, Indiana Finishing plant, which is expected to cost about $1.7 million. The move is expected to save about $600,000 in annual run-rate costs.
“We are pleased with our increasing degree and pace of execution,” said Brian Kobylinski, president and chief executive officer of Jason. “The third quarter Acoustics Europe divestiture allows our team to focus on the business’ core North American automotive market and the Virginia real estate sale will ensure a rapid completion of our Finishing operations consolidation project. Monetizing these non-core assets strengthens our balance sheet and supports our goal of reducing leverage.”
Jason executives could not be reached for comment.
