Shares of GUD Holdings (ASX:GUD) have increased by up to 2.9%, reaching a value of A$10.270.

This marks the highest level for the company’s stock since July 27.

GUD Holdings, an Australian automotive company, announced that it has sold its Davey Water Products subsidiary to Waterco (ASX:WAT) for a total enterprise value of A$64.9 million ($42.74 million).

Following this divestment, GUD Holdings expects to utilize the net cash proceeds to repay its debt.

Moreover, company plans to concentrate purely on its automotive division once this business transaction is completed.

As of its last closure, GUD’s stock has seen a rise of 31.7% this year, in contrast to a 4.1% increase in the S&P/ASX 200 index.

GUD Holdings is a well-established company in Australia, primarily focusing on the automotive industry and has just announced its intention to divest from its water products unit.