Accommodation and recreational vehicle business Fleetwood Corporation (ASX:FWD) has agreed to sell its Flexiglass Challenge business to automotive accessories business Aeroklas Australia for $7 million.
Flexiglass is part of Fleetwood’s Parts and Accessories segment and has a book value of $10.9 million. The sale will result in a write down of approximately $4 million in goodwill.
Managing Director Brad Denison said after undertaking a strategic review of the business, the company formed the view that this business would be better suited to ownership by a company in the automotive parts and accessories sector.
The transaction is expected to be complete by 31 January 2018.
Shares in Fleetwood Corporation (ASX:FWD) closed 4.94 per cent higher to $2.76.