GOSHEN, IN — Shareholders of aftermarket and OEM supplier Starcraft Corp. have voted to approve a proposed merger agreement with Troy, Mich.-based Wheel to Wheel, Inc., an automotive engineering and design business. The transaction has received all required regulatory clearance and the merger is expected to close by the middle of January.
In 1988, Starcraft and Wheel to Wheel jointly formed Tecstar, which provides and installs appearance enhancement items on vehicles provided by and returned to an original equipment manufacturer. The new agreement calls for Starcraft to acquire the remaining 50 percent ownership of Tecstar LLC and Tecstar Canada that it does not currently own by acquiring closely held Wheel to Wheel. The transaction merges Wheel to Wheel into a newly created subsidiary of Starcraft, which will exchange Starcraft common shares for shares of Wheel to Wheel. As a result of the merger, Starcraft will own directly or indirectly 100 percent of the equity interest in Tecstar.
Starcraft will issue 3.55 million common shares of Starcraft to the owners of Wheel to Wheel. The current owners of Wheel to Wheel will own approximately 40 percent of Starcraft’s fully diluted shares outstanding.
“This merger is key to the long term strategy of the company,” said Kelly Rose, chairman of the board. “As a single-focus company with improved financial flexibility and strong operating and financial management, we are positioned to more effectively take advantage of new opportunities to enhance shareholder value.”
Rose remains chairman of the board of the combined company. Effective upon the merger, Jeff Beitzel, president of Wheel to Wheel and Tecstar, and Mike Schoeffler, president and COO of Starcraft, will become co-CEOs of Starcraft.
Richard Anderson and Doug Goad remain executive vice presidents of Wheel to Wheel and Tecstar, and will join Beitzel as members of Starcraft’s board of directors.
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