Modine Completes the Sale of its Austrian Automotive Business

Rhea-AI Summary

Modine Manufacturing Company (NYSE: MOD) announced the completion of the sale of its Austrian air-cooled automotive business to Schmid Metall GmbH. CEO Neil D. Brinker stated this divestiture is a critical step in Modine's transformation, allowing it to avoid ongoing operational costs and liabilities. This sale follows a prior announcement regarding the pending sale of the liquid-cooled automotive business to Dana Incorporated, awaiting regulatory approval. In fiscal 2020, Modine generated revenues of $2.0 billion and aims to refocus resources on its most promising markets.

Positive

• Completion of the sale of the Austrian automotive business aligns with restructuring goals.
• The sale will help avoid ongoing operational costs and future liabilities.

Negative

• The automotive segment's divestiture may indicate challenges within this business area.

RACINE, Wis., May 3, 2021 /PRNewswire/ -- Modine Manufacturing Company (NYSE: MOD or the "Company"), a diversified global leader in thermal management technology and solutions, today announced that it has completed the sale of its Austrian air-cooled automotive business to Schmid Metall GmbH, an affiliate of Rupert Fertinger GmbH.

"The exit of the automotive business is an important and necessary component of our transformation, and completing this transaction is a good first step to this process," said Modine Chief Executive Officer, Neil D. Brinker. "This sale allows us to avoid the costs associated with continuing to run this business along with future liabilities and capital investments. This allows us to better align our resources around our best opportunities in our strongest and most attractive markets."

This announcement represents one portion of the automotive segment and follows the earlier announced agreement to sell the liquid-cooled automotive business to Dana Incorporated. That transaction is pending regulatory approvals.

About Modine

Modine, with fiscal 2020 revenues of $2.0 billion, specializes in thermal management systems and components, bringing highly engineered heating and cooling components, original equipment products, and systems to diversified global markets through its four complementary segments: CIS; BHVAC; HDE; and Automotive. Modine is a global company headquartered in Racine, Wisconsin (USA), with operations in North America, South America, Europe and Asia. For more information about Modine, visit www.modine.com.

Forward-Looking Statements

This press release contains statements, including information about future financial performance and market conditions, accompanied by phrases such as "believes," "estimates," "expects," "plans," "anticipates," "intends," and other similar "forward-looking" statements, as defined in the Private Securities Litigation Reform Act of 1995. Modine's actual results, performance or achievements may differ materially from those expressed or implied in these statements because of certain risks and uncertainties, including, but not limited to those described under "Risk Factors" in Item 1A of Part I of the Company's Annual Report on Form 10-K for the year ended March 31, 2020 and under Forward-Looking Statements in Item 7 of Part II of that same report and in the Company's Quarterly Reports on Form 10-Q for the quarters ended June 30, September 30, and December 31, 2020. Other risks and uncertainties include, but are not limited to, the following: the impact of the COVID-19 pandemic on the national and global economy, our business, suppliers, customers, and employees; the overall health and price-down focus of Modine's customers; our ability to successfully execute our strategic and operational plans, including our ability to successfully complete the pending sale of our liquid-cooled automotive business, including the receipt of governmental and third-party approvals and satisfaction of other closing conditions, and our ability to successfully exit our other automotive businesses; our ability to effectively and efficiently reduce our cost structure in response to sales volume declines and complete restructuring activities and realize benefits thereon; our ability to comply with the financial covenants in our credit agreements and to fund our global liquidity requirements efficiently; operational inefficiencies as a result of program launches, unexpected volume increases, product transfers, and delays or inefficiencies resulting from restrictions imposed in response to the COVID-19 pandemic; economic, social and political conditions, changes and challenges in the markets where Modine operates and competes, including foreign currency exchange rate fluctuations, tariffs (and potential trade war impacts resulting from tariffs or retaliatory actions), inflation, changes in interest rates or tightening of the credit markets, recession, restrictions associated with importing and exporting and foreign ownership, public health crises, and the general uncertainties about the impact of regulatory and/or policy changes, including those related to tax and trade, the COVID-19 pandemic and other matters, that have been or may be implemented in the U.S. or abroad, and continuing uncertainty regarding the impacts of "Brexit"; the impact on Modine of any significant increases in commodity prices, particularly aluminum, copper, steel and stainless steel (nickel) and other purchased components, and our ability to adjust product pricing in response to any such increases; the nature of and Modine's significant exposure to the vehicular industry and the dependence of this industry on the health of the economy; the concentration of sales within our CIS segment attributed to one customer; Modine's ability to recruit and maintain talent in managerial, leadership, and administrative functions; Modine's ability to protect its proprietary information and intellectual property from theft or attack; the impact of any substantial disruption or material breach of our information technology systems; costs and other effects of environmental investigation, remediation or litigation; and other risks and uncertainties identified by the Company in public filings with the U.S. Securities and Exchange Commission. Forward-looking statements are as of the date of this release, and the Company does not assume any obligation to update any forward-looking statements.

Investor & Media Contact

Kathleen Powers
(262) 636-1687
kathleen.t.powers@modine.com

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SOURCE Modine Manufacturing Company

FAQ

What recent transaction did Modine (MOD) announce?

Modine announced the completion of the sale of its Austrian air-cooled automotive business.

Who purchased Modine's Austrian automotive business?

The business was sold to Schmid Metall GmbH, an affiliate of Rupert Fertinger GmbH.

What is the significance of Modine's recent business sale?

The sale is part of Modine's transformation strategy to focus resources on more profitable markets.

What were Modine's revenues for fiscal year 2020?

Modine reported revenues of $2.0 billion for fiscal year 2020.

What other business divestitures does Modine have planned?

Modine is also in the process of selling its liquid-cooled automotive business to Dana Incorporated, pending regulatory approvals.