Subsequent Events

6 Months Ended

Jun. 30, 2020

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

On June 18, 2020, we communicated our intent to exit the bushing block business of the Engineered Products segment headquartered in Dieuze, France (the “Bushing Block business”). Subsequent to June 30, 2020 and continuing through the filing date, negotiations are being held with the Works Councils representing approximately 88 employees employed at the Dieuze facility regarding the level of severance benefits and other matters, and we have offered severance and benefits of approximately 5.4 million EUR. The timing of the exit from the Bushing Block business and the release of employees is dependent upon customer requirement discussions, which are ongoing. Restructuring charges are anticipated to include contract termination and other costs, in addition to the severance and benefits to be provided to affected employees, which may exceed the amount offered. In light of these and other uncertainties, we are not yet able to estimate the total amount or range of amounts expected to be incurred in connection with exiting the Bushing Block business and no portion of the restructuring charges related to this action have been accrued as of June 30, 2020.

As required by applicable French law, we are required to pursue a sale of the Bushing Block business prior to the closure of that business. Accordingly, we are concurrently marketing the Bushing Block business for sale, which we expect would require a cash payment by us. We cannot assure you that any such sale could occur on terms more favorable to the Company than exiting the operations of the Bushing Block business.

On August 3, 2020 we announced that we entered into a definitive agreement to sell the Air Springs portion of our heavy-duty trucking business for $32.0 million in cash and a long-term promissory note with a face value of $7.5 million that will be stated at fair value. We expect the pretax gain or loss to be at approximately breakeven. The purchase price is subject to adjustment based on the amount of cash and working capital on the closing date. The sale is expected to close in the third quarter of 2020 and is subject to antitrust approvals and typical closing conditions.