ABC Technologies Holdings Inc. has sold its 50 per cent interest in a joint venture in Ningbo, China, as the Canadian supplier continues to offload assets as part of its “sell or fix” strategy.
The company disclosed the sale of its stake in INOAC Huaxiang, which makes HVAC and fluid management systems for auto customers, on May 12, as it reported its third-quarter earnings for fiscal 2023.
The deal is worth 60 million Chinese yuan (about CDN $11.5 million), the company said. It did not disclose the buyer for its share in the joint venture, formed in 2011.
The transaction is the latest in a series of asset sales for the Toronto-based supplier, which brought in a new management team last year to overhaul its business.
On the company’s earnings call May 12, CEO Terry Campbell said ABC continues to “rationalize” its portfolio of assets, noting the sale of the joint venture in China would not be the last.
“We have more to come in the future,” Campbell told financial analysts and investors on the call.
Pointing to company assets, ABC CFO Scott Roggenbauer added that the company continues to execute on its “sell or fix” strategy.
The company reported revenues of US $373.5 million for its fiscal third quarter, up about 30 per cent from $285.8 million in the same quarter of 2022. Its net loss narrowed to $2 million for the quarter, from $6.3 million a year earlier.
