Featherlite Inc., a manufacturer of specialty aluminum trailers, transporters and luxury motorcoaches, announced today (July 27) that it has signed a definitive agreement to merge with a subsidiary of Universal Trailer Holdings Corp. of Cincinnati, Ohio.
According to a statement, Cresco, Iowa-based Featherlite will become a wholly-owned subsidiary of Universal Trailer, which produces several specialty trailer brands, including Haulmark, Exiss, Sooner and Miley.
A special committee of Featherlite’s outside directors approved the merger, which is expected to be completed by Oct. 31. Universal Trailer expects to retain the Featherlite trailer manufacturing locations and dealer network.
In addition, Featherlite Coaches Inc., a newly-formed company controlled by Conrad Clement, Featherlite’s chairman, president and CEO, Tracy Clement, Featherlite’s executive vice president, and Bulk Resources Inc., will purchase the assets and assume substantially all of the liabilities of Featherlite’s motorcoach division immediately following the closing of the merger.
Publicly traded Featherlite said shareholders will receive $6.50 in cash for each outstanding share of Featherlite common stock, representing a 52.9% premium over the closing price of the stock on July 26.
“We are very pleased to announce that Featherlite will be teaming with Universal Trailer to form the nation’s premier trailer company,” Conrad Clement said. “We have been exploring alternatives to enhance shareholder value and build the strategic strength of the company since January of this year. We believe this merger offers an excellent value for our shareholders and great new opportunities for Featherlite employees and dealers.
Tom Frey, CEO of Universal Trailer, noted: “Universal Trailer has become the largest specialty trailer company through building a family of brands offering great value across a broad range of price points. We’re excited about the addition of the excellent Featherlite brand to that family.”