Gentherm (THRM) Shareholders Approve Modine Merger, Clear for October Close

On September 10, Gentherm (NASDAQ: THRM) shareholders overwhelmingly approved the combination of Modine's Performance Technologies business with Gentherm. The vote was nearly unanimous, with 99% of votes supporting the share issuance needed to fund the deal and about 94% of shares approving the charter amendment. The transaction is set to close on October 1, following a strong second quarter.

The company reported $416.2 million in product revenue, up 11% year-over-year, and raised its full-year guidance for revenue, adjusted EBITDA, and adjusted free cash flow. Automotive Climate and Comfort Solutions revenue grew by 14.1%, outpacing light vehicle production data. The company also added two new furniture brands and completed an acquisition in medical devices.

The board authorized a $400 million stock repurchase program, and Gentherm ended the quarter with $502.3 million in liquidity. Despite a dip in gross margin to 23.2%, the company's guidance for the year was raised, excluding any impact from the Modine deal. The final exchange ratio, which will determine the merged company's ownership, is yet to be set.