Elders Limited
(ASX:ELD) will sell its auto arm to US private equity firm Clearlake Capital Group for $69 million.
The sale of Futuris Automotive will be used to reduce Elders’ net debt by about $56 million.
Elders says it will book a one-off net loss of about $28 million on the sale, which is subject to Foreign Investment Review Board approval.
The sale comes after Elders posted a first half net loss of over $300 million, after a $166.5 million writedown on Futuris Automotive, following Ford Australia’s decision to pull out of manufacturing in Australia from 2016.
Elders says the sale represents a major step in becoming a pure play rural services business.
Elders booked a net loss of $300.7 million in the first half of fiscal 2013.
