TPIC - TPI Composites Announces Agreement to Divest Automotive Business Unit as a Part of Continued Focus on Wind | Benzinga
SCOTTSDALE, Ariz., June 17, 2024 (GLOBE NEWSWIRE) -- TPI Composites, Inc., (TPI) (NASDAQ:TPIC) announced it has entered into a definitive agreement to divest its automotive business to Clear Creek Investments, LLC (CCI), a dedicated innovation and sustainability investor with a focus on deploying capital in companies driving climate solutions and climate resiliency throughout the energy, water, and food value chains.
As part of the divestiture transaction, TPI will sell its automotive subsidiary to CCI, which will be renamed Senvias™ Inc. The transaction is expected to close on June 30, 2024.
"After a thorough review of strategic alternatives, we're pleased to enter into this agreement with CCI," said Bill Siwek, President and Chief Executive Officer of TPI Composites. "The divestiture is expected to improve monthly cash flow by about $1.7 million over the balance of 2024 and underscores our focus to continue executing on our core business, achieve profitability and improve cash flow and drive long-term shareholder value."
"We are proud of the progress that the automotive team has made in growing this business and developing innovative solutions for the transportation market and are confident that CCI will provide the new capital and focus to enable the Automotive business to grow and serve its customers in the electric vehicle ...