Meridian sells composites business to Dacoma

Economic downturn prompts the sale to help improve Meridian's liquidity.

Meridian Automotive Systems Inc. (Allen Park, Mich., USA) announced on June 3 that it has reached an agreement with Decoma Composites LLC, an operating unit of Decoma International Corp. (Mississaugua, Ontario, Canada), whereby Decoma has, effective June 1, acquired elements of Meridian’s Composite business. 

Decoma has acquired, or assumed certain leases of Meridian’s Composite business and facilities located in Lenoir, Newton and Salisbury, N.C. and Celaya, Hermosillo, and Saltillo, Mexico. In addition, Decoma has assumed the lease of Meridian’s sheet molding compound (SMC) facility in Grabill, Ind. Terms of the transaction are not being disclosed.

Richard E. Newsted, Meridian president and CEO, said, “Meridian’s Composite operations are world-class, with high quality management and associates, with excellent customer relations primarily in the heavy truck and non-automotive markets. The decision to divest certain portions of our Composite business is another example of our continued focus on taking necessary actions to improve Meridian’s overall liquidity position in response to the severely depressed North American economic and automotive environment.”