ArvinMeritor Inc.'s board of directors has approved a plan to spin off its Light Vehicle Systems (LVS) business to ArvinMeritor shareholders, with the Commercial Vehicle Systems (CVS) business remaining with ArvinMeritor.
The planned spinoff of the LVS business — to be named Arvin Innovation Inc. — would be implemented through a pro rata tax-free dividend to ArvinMeritor shareholders. Upon completion of the spinoff, ArvinMeritor shareholders will own 100 percent of the common stock of Arvin Innovation. Approval of the spinoff by ArvinMeritor shareholders is not required, and the company expects to complete the spinoff within the next 12 months, contingent upon satisfactory financial and automotive market conditions as well as other customary approvals.
Chip McClure will remain ArvinMeritor's chairman, chief executive officer, and president. James Marley, currently a board member of ArvinMeritor, will lead Arvin Innovation's board of directors as non-executive chairman. Until the spin is completed, Marley, a retired chairman of the board of AMP Inc., will remain on the ArvinMeritor board. Phil Martens, currently ArvinMeritor's senior vice president and president, Light Vehicle Systems, will become the president and CEO of Arvin Innovation.
ArvinMeritor will remain headquartered in Troy MI. Arvin Innovation will be headquartered in Detroit MI at the current location of the LVS Detroit Technology Center.