ArvinMeritor Buying Canadian Company; Affirms Forecast

Heavy-duty parts maker ArvinMeritor said Tuesday it will acquire Mascot Truck Parts, based in Ontario, Canada. Terms were not disclosed.

Mascot is a remanufacturer of transmissions, drive axle carriers, steering gears and drivelines.

Separately, the company affirmed its 2008 profit forecast of $1.40 to $1.60 a share, Bloomberg reported.

A fiscal 2008 profit would be ArvinMeritor’s first after two straight annual losses totaling $394 million, Bloomberg said, citing a company presentation to analysts.

Mascot’s 170 full-time employees, six remanufacturing locations, and current customer base will become part ArvinMeritor, the company said.

“This expansion of our remanufacturing business makes sense for our customers and aligns with our business strategy to grow the aftermarket business,” said Carsten Reinhardt, president of ArvinMeritor’s commercial vehicle systems business.

ArvinMeritor established its axle carrier remanufacturing operation in 1982 at its Florence, Ky., national parts distribution center, and has since moved that operation into a remanufacturing center that includes brake shoes, transmissions and trailer axles, with 220 employees in Plainfield, Ind.