Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Gentherm Moves Toward Full Ownership of Germany's W.E.T.

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

On Friday, Michigan-based thermal management technologies company Gentherm (NASDAQ: THRM  ) announced that it is buying Deutsche Balaton's minority stake in Germany's W.E.T. Automotive Systems, preparatory to taking over the entire company.

Gentherm already owns a majority interest in W.E.T., a publicly traded German automotive thermal control and electronic components company. Simultaneously with the current purchase, Gentherm will also acquire a 23,044-share stake in W.E.T., which Deutsche Balaton will obtain from a third party. Thus, the instant transaction holds the potential to put approximately 90% of W.E.T.'s shares in Gentherm's hands. This purchase is scheduled to close within the next few days.

The ultimate goal of the purchase, however, as described in a statement on the transaction, is "to continue the process of combining into one entity, integrating our broad array of capabilities." So as its final step, Gentherm plans to offer to buy the remaining 10% of W.E.T.'s shares outstanding from their owners for a further $37 million.

In the instant transaction, Gentherm will be paying $7.5 million cash and issuing 3.3 million Gentherm shares, in exchange for Deutsche Balaton's 442,253-share, 13.8% interest in W.E.T. For the purposes of this transaction, the parties are agreeing to value Gentherm's shares at $13 each, implying a $50.4 million value on the purchase of Deutsche Balaton's stake.

Investors like the plan as a whole and bid up Gentherm's own shares 6.6% to $15.46 in Friday trading.

Read/Post Comments (0) | Recommend This Article (0)

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2260305, ~/Articles/ArticleHandler.aspx, 9/28/2016 3:07:54 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,325.60 97.30 0.53%
S&P 500 2,168.69 8.76 0.41%
NASD 5,312.01 6.30 0.12%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/28/2016 2:51 PM
THRM $31.11 Up +0.52 +1.70%
Gentherm CAPS Rating: ****