Debt-laden Elders has sold its car interiors business Futuris Automotive to a US private equity firm for $69 million.

Proceeds from the sale to Clearlake Capital Group will be used to reduce the company’s net debt by about $56 million, Elders said.

But it expects to book a one-off loss of about $28 million from the sale.

Elders said the sale, which comes 11 months after Futuris was first put on the market, was a major step in its path to becoming solely focussed on rural services.

“The sale of Futuris is a good outcome for Elders, both in terms of our priority to focus capital on a pure play rural services business and the ability to further reduce our debt,” managing director Malcolm Jackman said in a statement.

“It is also a very positive result for Futuris, its employees, customers and the Australian automotive industry as it represents a vote of confidence in both Futuris and the Australian industry.”

The 174-year-old company put Futuris and its rural services businesses up for sale in 2012 as part of a strategy to pay off its massive debts.

But an offer for the rural services business from rival company Ruralco was rejected in June, and Elders is now focussed on continuing to run the business.

Elders shares gained 0.9 cents to 8.8 cents.

Futuris was written down in value by $166.5 million this year following Ford’s announcement it would stop making cars in Australia.