The Gentherm Modine deal won shareholder approval, moving the combination of Gentherm and Modine’s Performance Technologies business closer to completion. Gentherm (NASDAQ: THRM) said the transaction is expected to close on October 1, subject to remaining customary conditions.
Preliminary voting results showed that approximately 99% of votes cast supported the share issuance. About 94% of outstanding shares entitled to vote backed a related charter amendment, and the companies have received the required regulatory approvals.
Gentherm Modine Deal Approaches Planned October Closing
The transaction uses a Reverse Morris Trust structure. Modine Manufacturing (NYSE: MOD) will separate its Performance Technologies business and combine it with Gentherm, with Modine shareholders expected to own about 40% of the resulting company and Gentherm shareholders about 60%, subject to adjustment.
The companies’ official transaction announcement valued the business combination at roughly $1 billion and projected about $25 million in annual cost synergies. Management expects adjusted earnings accretion by the second year, although those estimates are forward-looking.
The Gentherm Modine deal remains dependent on closing mechanics and the final exchange ratio. After completion, investors will focus on integration costs, synergy delivery and demand across automotive thermal-management and performance-technology markets.
