Modine Manufacturing Company [NYSE: MOD] has entered into a deal with Schmid Metall GmbH to divest its automotive business. As per the agreement, the firm will not only sell its European air-cooled automotive business but also the production plant situated in Kottingbrunn, Austria.
Modine Manufacturing is intending to reduce its unpaid debt and for future ventures in the business. The firm is anticipating executing the first half of 2021 after the fulfillment of necessary provisions. The share of Modine Manufacturing rocketed 7.74% at $14.62 at the time of writing.
This sale of Modine Manufacturing firm followed by the previous declaration of the liquid-cooled automotive business to Dana Incorporated. In the past 52-weeks of trading, the share of the firm oscillated $2.84 and $14.80 during the 52-week low and high range. Modine has a total market value of $752.78 million. The sale of an air-cooled business is anticipated to finalize in the first half of 2021 after it will get the necessary authorization.
CEO of Modine stated: “We have been on a striving to be recognized as a differentiated manufacturing firm and this deal will enable us to concentrate our assets on our continuing businesses that offer higher operating margins, lower capital strength, and greater free cash flow formulation.”