NEW HAVEN, CT — Transpro announced today it has completed the sale of its heavy duty OEM business to Modine Manufacturing Co. for $17 million in cash. The heavy duty OEM business generated net sales of approximately $50 million in 2004.
Transpro said it will use the proceeds from the sale primarily to pay down debt and expects to report a one-time gain of approximately $6 million in the first quarter of 2005, as a result of the transaction.
The sale of Transpro’s heavy duty OEM business was agreed to in connection with the proposed merger of Modine’s aftermarket business, debt free, into Transpro. The two companies intend to close the merger during the second quarter of 2005, subject to customary conditions, including the approval of Transpro’s shareholders.
“The sale of our heavy duty OEM business to Modine marks an important milestone for Transpro,” said Charles Johnson, president and CEO of Transpro. “With this event we are one step closer to completing a set of transforming transactions, through which we will concentrate our business efforts on our aftermarket business, enhance our leadership position in the heat transfer aftermarket business, increase our geographic and product scope, and attain the financial strength and flexibility we need to succeed in today’s competitive environment.”
Transpro’s OEM business unit, originally known as G&O Manufacturing Co., has been in operation since 1915. According to Johnson, the market this unit serves — heavy duty heat transfer products — has become highly concentrated on a global basis, and the deal with Modine will provide a home for this operation, including its primary Jackson, Miss., plant.
“We wish all our Jackson associates the very best of success and thank them for their long service to Transpro and its precedent companies,” he said.
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