Elders Limited revealed that it had agreed to sell its automotive interior components business unit, Futuris Automotive, for about US$69 million to Clearlake Capital Group, a US-based private equity investor. The sales agreement, if completed, will remove one of the last non-agricultural business units in Elders Limited's organization, leaving the firm as an entirely rural services firm.
The deal between the two companies on Futuris' fate is still subject to conditions and several approvals including an approval from Foreign Investment Review Board. Analysts, however, expect the deal to be completed by the end of this month.
Malcolm Jackman, managing director at Elders Limited, said the finalization of the sale for the Melbourne-based car parts manufacturer would be a great conclusion for Elders Limited, its employees, and its automotive business. "The sale is a good outcome for Elders in terms of our priority to focus capital on our rural services business," he noted.
The deal would also help Elders further reduce its debt. "This sale will allow us to increase our focus on supporting the day-to-day needs of our rural and regional clients, delivering a high level of service and security across our entire product and service range," Mr. Jackman added.
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