Modine has signed a definitive agreement with Schmid Metall, an affiliate of Rupert Fertinger, to sell a portion of the company’s European air-cooled automotive business, including its manufacturing facility located in Kottingbrunn, Austria.
The transaction is expected to close in the first half of 2021, following receipt of regulatory approvals and other customary closing conditions.
The sale will allow the company to avoid significant liabilities and future cash investments in the business.
“This is an important step in our strategic exit of the automotive segment businesses, allowing us to further fuel and grow our remaining business,” said Modine CEO, Neil Brinker.
“We have been on a journey to become a diversified industrial company and this transaction will allow us to focus our resources on our remaining businesses that provide higher operating margins, lower capital intensity and greater free cash flow generation.”
The announcement follows the earlier-revealed sale of the liquid-cooled automotive business to Dana. That transaction is also expected to close in the first half of 2021, following receipt of regulatory approvals.