Subsequent Event

6 Months Ended

Jun. 30, 2024

Subsequent Events [Abstract]

Subsequent Event

Subsequent Event

On July 31, 2024, the Company and SVO, LLC ("Buyer") entered into a purchase agreement to sell its cab structures business with operations in Kings Mountain, North Carolina. Under the terms of the purchase agreement, Buyer will purchase substantially all of the assets of the Company's business of manufacturing and assembling structured products, including cabs for medium and heavy-duty vehicles, at its facility in Kings Mountain, North Carolina. The agreement is subject to the satisfaction of customary closing conditions and is expected to close in the second half of 2024. In connection with entering into the purchase agreement, the parties contemplate entering into a negotiated transition services agreement.

Pursuant to the terms of the purchase agreement, net proceeds of the transaction are expected to be $40 million, subject to adjustment for any variance of the actual value of inventory at closing from the estimated inventory value.

The majority of the proceeds from the transaction will be used for debt paydown and other general corporate purposes. Upon closing of the transaction, the Company expects to record a gain on sale in the range of $25 million to $30 million.

As a result of the proposed transaction, we expect our Kings Mountain business to be presented as a discontinued operation in the third quarter of 2024, its net assets classified as held for sale, and certain prior period amounts retrospectively revised to reflect these changes.