Distributor of automotive replacement equipment Uni-Select Inc said it would sell assets of its heavy duty group, generating about C$22 million ($19.66 million) in cash.
The company said the division related to replacement parts, tools and accessories for heavy-duty vehicles would be sold to UAP Inc, and the wheels division to Robert Thibert Inc.
Our heavy duty group deployed efforts to grow market share in Canada but did not attain the desired level of profitability, Chief Executive Richard Roy said in a statement.
Uni-Select, which operates in three business segments -- automotive group Canada, automotive group USA and heavy duty group -- expects these transactions to result in a non-recurring loss of about C$5 million.
The company said proceeds from the sales would be used to reduce debt.
Shares of the company were down 5 Canadian cents at C$23.85 during morning trade Thursday on the Toronto Stock Exchange. ($1=1.119 Canadian Dollar) (Reporting by Isheeta Sanghi in Bangalore; Editing by Aradhana Aravindan)