ALGONA, IOWA -- Universal Manufacturing of Algona, Iowa, has sold its distribution subsidiary, Universal Distribution, LLC to AER Sales, L.P. of Carrollton, TX.

Universal distributes remanufactured Ford and Motorcraft branded engine and transmission assemblies and other powertrain related components, mainly to Ford dealerships. It has warehouses in Des Moines, Iowa, Omaha, NE, and Peoria, IL, and employs 10 people. Business Capital Corp., the Des Moines-based merger and acquisition consulting firm, assisted in negotiating the transaction.

According to Don Heupel, president of Universal Manufacturing, the sale will have no material effect on the operations or personnel of Universal Manufacturing, which remanufactures auto parts such as fuel pump assemblies, brake calipers, transfer cases, transfer case engagement motors at its facility in Algona.

The terms of the sale were not disclosed. The net effect of the sale will add about $3.50 per share to the consolidated net book value of Universal Manufacturing. Based on recent results, the sale will reduce annual earnings from operations by about 70 percent, although the effect of the return on investment of the sale proceeds is unknown and not considered. The company’s board of directors is currently reviewing strategic alternatives for the investment of the proceeds of the sale.