Winnebago Industries Inc. has agreed to sell its idled facility in Charles City, Iowa, for $3.9 million to CGS Tires US Inc.
Based in Forest City, Iowa, Winnebago Industries had idled the
plant in August 2008, moved those assembly operations to its Forest City
campus and recorded an impairment of the assets of $4.7 million at that
time. The company estimates it will record a small gain on the sale
when the transaction closes on or before Nov. 1, according to a company
filing with the Securities and Exchange Commission.
The transaction is subject to certain closing conditions, including
(i) approval of state, county, governmental or quasi-governmental
incentives, and (ii) a due diligence inspection of the facility,
including an acceptable Phase I Environmental Report. In the event that
CGS is not satisfied with the results of its inspection of the facility
for any reason whatsoever, or the required incentives are not approved,
CGS may terminate this agreement via written notice by Oct. 25.
In addition, CGS’s obligation to purchase the factory site is
contingent on CGS obtaining a written commitment for a loan in the
amount of at least $2.73 million on terms reasonable satisfactory to CGS
by Sept. 29.