Universal Trailer Holdings Corp. (UTC) has announced that one of its subsidiaries has completed its merger with Featherlite, Inc. , and Featherlite has become a wholly-owned subsidiary of UTC. With the closing, Featherlite, a major American aluminum trailer manufacturer with a network of over 220 dealers in the U.S., Canada, Australia and Europe, joins UTC’s family of brands.
Under the terms of the merger agreement, Featherlite shareholders will receive $6.50 in cash for each outstanding share of Featherlite common stock. UTC has appointed Bank of New York as the paying agent for payment of the merger consideration. The paying agent will promptly distribute letters of transmittal to Featherlite shareholders with instructions regarding the surrender of their stock certificates for payment of the merger consideration. Shareholders do not need to take any action regarding their shares until contacted by the paying agent. As a result of the merger, shares of Featherlite common stock will cease trading on NASDAQ at the close of business today and Featherlite will be de-registered with the Securities and Exchange Commission.
Additionally, the assets of Featherlite’s luxury motor coach division have been sold to, and its liabilities assumed by, Featherlite Coaches, Inc., a newly-formed company controlled by Conrad Clement, Tracy Clement and Bulk Resources, Inc.
Tom Frey, president and chief executive officer of Universal Trailer, stated, “We are pleased to welcome Featherlite to Universal Trailer’s family of brands. With Universal’s goal of offering best value across a broad range of price points, the Featherlite acquisition is a terrific strategic fit, expanding Universal’s reach into new market segments and price points. It rounds out our good, better, best product offer with a multi-brand strategy.”
Universal Trailer expects to retain the existing Featherlite trailer manufacturing locations and dealer network.
Besides Featherlite, UTC is home of Haulmark, Sooner, Exiss and Miley trailer brands. Haulmark is the leading car, utility and adventure trailer brand. Sooner, Exiss and Miley brands serve the growing horse and livestock trailer market. Haulmark Motorized, a heavy-duty line of specialty recreational vehicles with living quarters, is also part of UTC.
In acquiring Featherlite, UTC brings into its group the official trailer of NASCAR® and five other motor sports sanctioning bodies and tracks, the official sponsor of major horse and livestock events and organizations, a robust race and mobile marketing transporter segment, as well as Featherlite equine, livestock, car, recreation and commercial trailer categories.
UTC’s Featherlite offices and manufacturing facilities are located in Cresco, Iowa. The Featherlite STL steel trailer manufacturing plant is located in Shenandoah, Iowa.
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