Shares of Modine Manufacturing Co. (NYSE:MOD) are trading lower Friday morning. The company completed the spin-off and merger of its Performance Technologies unit with Gentherm Inc. in a $946.4 million Reverse Morris Trust transaction.
Here’s what investors need to know.
- Modine Manufacturing shares are falling. Why is MOD stock trading lower?
$946 Million Reverse Morris Trust Separation
On Thursday, Modine finalized the tax-free separation of its Performance Technologies business via Platinum SpinCo Inc., which merged with Gentherm.
Modine shareholders received 0.44619 Gentherm shares for each Modine share held as of the September 28 record date, yielding a 43.62% stake in the combined entity. Modine also received a $156 million cash distribution to pay down debt.
Strategic Focus on Data Center Cooling
The separation establishes Modine as a thermal management provider focused on high-growth data center cooling and commercial HVAC markets. Modine plans to vote on changing its corporate name to Modexus Solutions within three months, while retaining its “MOD” ticker symbol on the New York Stock Exchange.
“Completing this transaction marks an important milestone in our evolution to a diversified thermal management company serving high-growth markets,” said Neil D. Brinker, President and Chief Executive Officer of Modine.
“With a portfolio focused on data center cooling, commercial HVAC and refrigeration, we can devote our resources and 80/20 discipline to the markets where our thermal management expertise can make the greatest difference for customers and create long-term value for shareholders,” Brinker added.
MOD Stock Drops Friday Morning
MOD Price Action: Modine Manufacturing shares were down 3.81% at $182.00 during premarket trading on Friday, according to Benzinga Pro data.
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