COLMAR, Pa. — Dorman Products announced that its board of directors has approved the exit of the international portion of the company’s ScanTech business, which is headquartered outside Stockholm, Sweden.

ScanTech markets and distributes a line of Volvo and Saab replacement parts throughout the world. As part of the exit, ScanTech’s North American business, which is currently serviced from Sweden, will be transferred to the company’s Colmar, Pa., headquarters and distribution center while ScanTech’s international business will be offered for sale. The exit process is expected to be executed over the next 12 months.

Steven Berman, Dorman chairman and CEO, said, "The decision to exit ScanTech’s international business was a difficult one. We believe, however, that this action better positions Dorman to focus on continued aggressive growth of its North American business."

The exit is expected to result in pre-tax costs of approximately $5 million during the exit period, including operating losses, asset write-downs and employee-related expenses. The exit charges include approximately $3.5 million of non-cash charges primarily related to write-downs and $1.5 million of cash expenses. No tax benefits are expected to be realized due to the international nature of these charges.

Proceeds from the exit of ScanTech’s international business are expected to generate approximately $3 million of cash, net of expenses, as the assets are sold.

Approximately $3.6 million, or 20 cents per diluted share, of the exit costs are expected to be recognized in the third quarter of fiscal 2011, with the balance of $1.4 million, or 7 cents per diluted share, expected to be reflected in the fourth quarter of fiscal 2011 and fiscal 2012. In addition, a non-cash foreign exchange gain ranging from $3.2 to $3.7 million may be realized in the future in the event of a complete exit of the foreign entity.

ScanTech’s sales were $17.9 million in fiscal 2010. It reported losses in each of the past three fiscal years, with a 2010 pretax and net loss of approximately $2 million.