Shareholders of Featherlite Inc., Cresco, Iowa, voted at a special stockholders meeting Wednesday (Oct. 11) to approve the sale of the company to Universal Trailer Holdings Co. of Cincinnati, Ohio.
The Des Moines Register reported that owners of 9.3 million shares voted in favor of the deal, and holders of 6,245 shares voted against it, according to the company.
The biggest stake in the company is held by Conrad Clement, the company’s president and chief executive, and three other members of the Clement family.
Featherlite makes trailers to transport NASCAR race cars and racing teams. It also makes trailers to carry livestock, motorcycles, cars and other cargo. Universal Trailer produces several specialty trailer brands, including Haulmark, Exiss, Sooner and Miley.
The sale, announced in July, is subject to various conditions, but the company expects the deal to be completed this month.
Universal plans to pay $79.5 million for Featherlite and to assume $29.1 million in Featherlite debt, putting the total value of the deal at $108.6 million. Featherlite shareholders will receive $6.50 per share.
Featherlite employs about 1,400 people, including about 1,100 in Cresco and Shenandoah.
Universal expects to retain the Featherlite trailer factories and dealer network, the company has said.
Once the deal is closed, a newly formed company, Featherlite Coaches, plans to buy the assets of Featherlite’s Florida-based motor coach division from Universal.
Clement and his son, Tracy, are major stakeholders in the new company.
Featherlite said Wednesday that a lawsuit has been filed to block the purchase of the motor coach division, but it believes there is no merit to the case.
The action relates to Universal Luxury Coaches, which is not associated with Universal Trailer, Featherlite said.