Gentherm Shareholders Approve Merger with Modine's Performance Technologies Business
On September 10, Gentherm (NASDAQ:THRM) shareholders overwhelmingly approved the merger of its company with Modine’s Performance Technologies business. The deal received strong support, with approximately 99% backing the issuance of new shares and about 94% approving a charter amendment to authorize them. Regulatory approvals have already been secured, including from the IRS on tax treatment, setting the stage for the transaction to close by October 1. The merger follows a solid second-quarter performance where Gentherm reported $416.2 million in product revenue—a year-over-year increase of 11%. The company raised its full-year guidance across key metrics and added new business awards totaling $690 million, including growth in automotive climate solutions and medical devices through an acquisition. Despite the positive momentum, Gentherm faced some challenges during Q2. Gross margin declined slightly due to higher material costs and warranty accruals, while operating cash flow dropped significantly from $31.7 million to just $2.3 million as a result of restructuring and merger-related expenses.
Topics: Mergers & Acquisitions Regulatory Clearance Shareholder Approval