Modine Announces Sale of Austrian Automotive Business
Sale marks essential stage in the exit of the automotive organization
RACINE, Wis., Feb. 19, 2021 /PRNewswire/ — Modine Manufacturing Company (NYSE: MOD or the “Organization”), a diversified world wide leader in thermal management know-how and methods, currently introduced that it has signed a definitive settlement with Schmid Metall GmbH, an affiliate of Rupert Fertinger GmbH, to promote a portion of the Firm’s European air-cooled automotive enterprise, which includes its manufacturing facility located in Kottingbrunn, Austria.
The transaction is predicted to shut in the initially 50 % of 2021, following the receipt of regulatory approvals and other customary closing situations. The sale will make it possible for the Firm to keep away from significant liabilities and upcoming cash investments in the business enterprise.
“This is an essential stage in our strategic exit of the automotive phase businesses, enabling us to even more fuel and increase our remaining enterprise,” mentioned Modine Chief Govt Officer, Neil D. Brinker. “We have been on a journey to turn out to be a diversified industrial enterprise and this transaction will allow for us to concentration our sources on our remaining companies that offer increased running margins, lower funds depth and increased totally free hard cash flow technology.”
This announcement follows the before declared sale of the liquid-cooled automotive enterprise to Dana Included. That transaction is also envisioned to near in the very first half of 2021 following receipt of regulatory approvals.
About Modine
Modine, with fiscal 2020 revenues of $2. billion, specializes in thermal management programs and elements, bringing extremely engineered heating and cooling components, unique machines merchandise, and units to diversified world wide marketplaces by means of its four complementary segments: CIS BHVAC HDE and Automotive. Modine is a worldwide business headquartered in Racine, Wisconsin (Usa), with operations in North The united states, South The us, Europe and Asia. For additional info about Modine, visit www.modine.com.
Forward-Searching Statements
This press launch includes statements, which include details about long run financial effectiveness and sector conditions, accompanied by phrases this kind of as “thinks,” “estimates,” “expects,” “plans,” “anticipates,” “intends,” and other equivalent “forward-wanting” statements, as outlined in the Personal Securities Litigation Reform Act of 1995. Modine’s precise results, general performance or achievements may well differ materially from those expressed or implied in these statements since of selected risks and uncertainties, like, but not constrained to those people described under “Risk Things” in Item 1A of Section I of the Company’s Yearly Report on Kind 10-K for the year finished March 31, 2020 and below Ahead-Looking Statements in Merchandise 7 of Part II of that same report and in the Company’s Quarterly Studies on Kind 10-Q for the quarters finished June 30, September 30, and December 31, 2020. Other challenges and uncertainties incorporate, but are not restricted to, the adhering to: the influence of the COVID-19 pandemic on the nationwide and world overall economy, our business enterprise, suppliers, prospects, and staff the all round health and fitness and cost-down target of Modine’s consumers our potential to correctly execute our strategic and operational programs, such as our ability to successfully comprehensive the pending sale of our liquid-cooled automotive business enterprise, which includes the receipt of governmental and 3rd-bash approvals and satisfaction of other closing circumstances, and our potential to efficiently exit our other automotive firms our skill to efficiently and competently minimize our value framework in response to profits quantity declines and full restructuring functions and notice advantages thereon our capability to comply with the financial covenants in our credit rating agreements and to fund our global liquidity prerequisites efficiently operational inefficiencies as a result of plan launches, unforeseen quantity increases, merchandise transfers, and delays or inefficiencies ensuing from limits imposed in reaction to the COVID-19 pandemic economic, social and political situations, improvements and challenges in the markets wherever Modine operates and competes, together with foreign currency trade fee fluctuations, tariffs (and possible trade war impacts ensuing from tariffs or retaliatory actions), inflation, adjustments in curiosity rates or tightening of the credit score marketplaces, economic downturn, constraints related with importing and exporting and overseas possession, community health crises, and the typical uncertainties about the affect of regulatory and/or coverage modifications, which includes those related to tax and trade, the COVID-19 pandemic and other issues, that have been or might be carried out in the U.S. or abroad, and continuing uncertainty with regards to the impacts of “Brexit” the impact on Modine of any substantial increases in commodity costs, particularly aluminum, copper, steel and stainless steel (nickel) and other procured elements, and our capability to modify item pricing in reaction to any these improves the mother nature of and Modine’s considerable publicity to the vehicular market and the dependence of this field on the overall health of the economic system the focus of sales inside our CIS section attributed to one particular customer Modine’s potential to recruit and keep talent in managerial, leadership, and administrative functions Modine’s potential to defend its proprietary information and facts and intellectual house from theft or attack the impact of any considerable disruption or content breach of our facts technological innovation programs costs and other effects of environmental investigation, remediation or litigation and other hazards and uncertainties determined by the Company in community filings with the U.S. Securities and Trade Commission. Forward-wanting statements are as of the day of this launch, and the Corporation does not assume any obligation to update any forward-wanting statements.
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