Affinia Group Intermediate Holdings Inc. - Corporate

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 28, 2015
Affinia Group Intermediate Holdings Inc.
(Exact name of registrant as specified in its charter)
Delaware
333-128166-10
34-2022081
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
1 Wix Way
Gastonia, North Carolina
28054
(Address of principal executive offices)
(Zip Code)
(704) 869-3300
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following
provisions:
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Introductory Note
All of the information contained in this Current Report on Form 8-K relates to the previously announced sale by Affinia Group Intermediate Holdings Inc.
(the “Company”) of the equity interest of Affinia Automotiva Ltda. (“Automotiva”) held by Affinia Canada ULC and Affinia Southern Holdings LLC (the
“Sellers”), indirect wholly-owned subsidiaries of the Company. The sale was completed pursuant to the terms of a Quota Purchase and Sale Agreement, dated
as of June 12, 2015, as amended on October 28, 2015 (the “Agreement”), among the Sellers and Auto Norte Distribuidora de Peças Ltda., Cobra Rolamentos e
Autopeças Ltda., Sedim – Administração e Participações Ltda., Jorge Schertel and Pedro Molina Quaresma (the “Buyers”). The amendment of the Agreement
is described under Item 1.01 below, and the closing of the sale is described under Item 2.01 below.
Item 1.01 Entry into a Material Definitive Agreement.
On October 28, 2015, the Sellers entered into the First Amendment to the Quota Purchase and Sale Agreement (the “Amendment”) with Autopartners
Participacoes S.A., as successor in interest to the Buyers under the Agreement. Among other matters, the Amendment provides that, upon the closing of the
sale of Automotiva pursuant to the Agreement, a substantial portion of the consideration payable to the Sellers will be placed in an escrow account with a
Brazilian bank for application to amounts that may be owed by Automotiva in connection with potential legal liabilities. The Amendment provides that such
account shall be the sole source of funds from which the Buyers may recover from the Sellers as to any amounts that may be owed by Automotiva relating to
such potential liabilities, and provides for the release of such funds to the Sellers upon related specified events.
The foregoing description of the Amendment is not complete and is subject to and qualified in its entirety by reference to the text of the Amendment, which
is filed as Exhibit 2.1 to this Current Report on Form 8-K and is incorporated by reference in this Item 1.01.
Item 2.01 Completion of Acquisition or Disposition of Assets.
On October 30, 2015, the Company completed the previously announced sale of Automotiva. Upon closing, the Sellers received a purchase price of
148,982,541 Brazilian Reals, or US$38,596,513 based on the Real/Dollar exchange rate as of October 30, 2015, reflecting a base purchase price of
146,285,000 Brazilian Reals (or $37,897,668 based on the Real/Dollar exchange rate as of October 30, 2015), as adjusted pursuant to the terms of the
Agreement to reflect the actual interim profits and losses of the Automotiva business. The Sellers received $19,657,726 in cash after deduction of certain
expenses and taxes and the placement of a portion of the consideration payable to the Sellers in an escrow account in accordance with the terms of the
Amendment.
The foregoing description of the Agreement and the Amendment is not complete and is subject to and qualified in its entirety by reference to the text of the
Agreement and the Amendment. The Agreement was filed as Exhibit 2.1 to the Company’s Current Report on Form 8-K filed with the Securities and
Exchange Commission on June 19, 2015 and is incorporated by reference in this Item 2.01. The Amendment is filed as Exhibit 2.1 to this Current Report on
Form 8-K and is incorporated by reference in this Item 2.01.
Item 8.01 Other Events.
On November 4, 2015, Affinia Group Inc., a wholly-owned subsidiary of the Company, issued a press release announcing the completion of the sale of
Automotiva. A copy of the press release is filed as Exhibit 99.1 to this Current Report on Form 8-K.
Item 9.01 Financial Statements and Exhibits.
(b) Pro Forma Financial Information
The unaudited pro forma financial statements of the Company as of June 30, 2015, for the six months ended June 30, 2015 and for the year ended
December 31, 2014 are filed as Exhibit 99.2 to this Current Report on Form 8-K and incorporated by reference in this Item 9.01(b).
(d) Exhibits
2.1
First Amendment to the Quota Purchase and Sale Agreement, dated October 28, 2015, among Affinia Canada ULC and Affinia Southern Holdings
LLC, as Sellers, Autopartners Participacoes S.A., as Purchaser, and Affinia Automotiva Ltda. and Affinia Group Inc., as Intervening Consenting
Parties.
99.1
Press Release of Affinia Group Inc. issued November 4, 2015.
99.2
Unaudited pro forma financial statements of Affinia Group Intermediate Holdings Inc. as of June 30, 2015, for the six months ended June 30, 2015
and for the year ended December 31, 2014.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Affinia Group Intermediate Holdings Inc.
Date: November 5, 2015
By:
/s/ David E. Sturgess
Name: David E. Sturgess
Title: Senior Vice President
Exhibit Index
Exhibit No.
Description
2.1
First Amendment to the Quota Purchase and Sale Agreement, dated October 28, 2015, among Affinia Canada ULC and Affinia Southern
Holdings LLC, as Sellers, Autopartners Participacoes S.A., as Purchaser, and Affinia Automotiva Ltda. and Affinia Group Inc., as
Intervening Consenting Parties.
99.1
Press Release of Affinia Group Inc. issued November 4, 2015.
99.2
Unaudited pro forma financial statements of Affinia Group Intermediate Holdings Inc. as of June 30, 2015, for the six months ended June
30, 2015 and for the year ended December 31, 2014.
Exhibit 2.1
ADITIVO AO CONTRATO DE COMPRA
E VENDA DE QUOTAS
FIRST AMENDMENT TO THE QUOTA
PURCHASE AND SALE AGREEMENT
Esse Primeiro Aditivo ao Contrato de Compra e Venda de Quotas (o “Aditivo”)
é celebrado em 28 de outubro de 2015, entre:
This First Amendment to the Quota Purchase and Sale Agreement (the
“Amendment”) is entered into on October 28, 2015, by and among:
I. De um lado, doravante designadas, individualmente, “Vendedora” e, em
conjunto, “Vendedoras”:
I. On the one side, hereinafter also individually referred to as “Seller”
and, jointly, as “Sellers”:
(a) AFFINIA CANADA ULC, sociedade de responsabilidade ilimitada, com
sede em Suite 3300, 421-7th Avenue SW, Calgary, Alberta, Canadá, T2P 4K9,
inscrita no CNPJ/MF sob o nº 07.046.423/0001-91, neste ato representada por
seus representantes infra-assinados (“Affinia Canada”); e
(a) AFFINIA CANADA ULC, an unlimited liability company, with its
principal place of business at Suite 3300, 421-7 th Avenue SW, Calgary,
Alberta, Canada, T2P 4K9, enrolled in CNPJ/MF under
No. 07.046.423/0001-91, herein represented by its undersigned
representatives (“Affinia Canada”); and
(b) AFFINIA SOUTHERN HOLDINGS LLC, sociedade limitada, com sede em
Corporation Trust Center, 1209 Orange Street, Wilmington, Delaware, Estados
Unidos da América, 19801, inscrita no CNPJ/MF sob o nº 07.046.424/0001-36,
neste ato representada por seus representantes infra-assinados (“Affinia
Southern”);
(b) AFFINIA SOUTHERN HOLDINGS LLC, a limited liability
company, with its principal place of business at Corporation Trust Center,
1209 Orange Street, Wilmington, Delaware, United States of America,
19801, enrolled in CNPJ/MF under No. 07.046.424/0001-36, herein
represented by its undersigned representatives (“Affinia Southern”);
II. De outro lado, como “Compradora”:
II. On the other side, as “Purchaser”:
(c) AUTOPARTNERS PARTICIPAÇÕES S.A., sociedade por ações, com sede
na cidade de São Paulo, Estado de São Paulo, na Rua Alvorada, 1.289, conjunto
902, Vila Olímpia, CEP 04550-004, inscrita no CNPJ/MF sob o nº
20.793.033/0001-43, neste ato representada por seus representantes infraassinados (“Autopartners” ou “Compradora”);
(c) AUTOPARTNERS PARTICIPAÇÕES S.A., a Brazilian corporation
(sociedade por ações), with its principal place of business in the city of
São Paulo, State of São Paulo, Brazil, at Rua Alvorada, 1.289, conjunto
902, Vila Olímpia, CEP 04550-004, enrolled with CNPJ/MF under No.
20.793.033/0001-43, represented by its undersigned representatives
(“Autopartners”);
Cada uma das Vendedoras e Compradora doravante designadas,
individualmente, “Parte” e, em conjunto, “Partes”;
Each of the Sellers and Purchaser shall be individually referred to as a
“Party” and jointly referred to as “Parties”;
III. E ainda, como “Parte Interveniente Anuente”:
III. As “Intervening Consenting Party”:
(d) AFFINIA AUTOMOTIVA LTDA., a sociedade empresária limitada
brasileira, com sede na cidade de Osasco, Estado de São Paulo, Brasil, na
Avenida Presidente Médici, 939, Pavilhão C, Jardim Mutinga, CEP 06268-000,
inscrita no CNPJ/MF sob o nº 04.156.194/0001-70, neste ato representada por
seus representantes infra-assinados (“Automotiva” ou “Sociedade”); e,
(d) AFFINIA AUTOMOTIVA LTDA., a Brazilian limited liability
company (sociedade limitada), with its principal place of business in the
city of Osasco, State of São Paulo, Brazil, at Avenida Presidente Médici,
939, Pavilhão C, Jardim Mutinga, ZIP Code 06268-000, enrolled in
CNPJ/MF under No. 04.156.194/0001-70,herein represented by its
undersigned representatives (“Automotiva” or the “Company”); and
(e) AFFINIA GROUP INC., uma Delaware corporation, com sede em
Corporation Trust Center, 1209 Orange Street, Wilmington, Delaware, Estados
Unidos da América, 19801, inscrita no CNPJ/MF sob o nº 07.046.424/0001-36,
neste ato representada por seus representantes infra-assinados (“Affinia”).
(e) AFFINIA GROUP INC., a Delaware corporation, with its principal
place of business at Corporation Trust Center, 1209 Orange Street,
Wilmington, Delaware, United States of America, 19801, herein
represented by its undersigned representatives (“Affinia”).
CONSIDERANDO QUE:
WHEREAS:
(a) em 12 de junho de 2015, as Vendedoras celebraram com Distribuidora
Automotiva S.A., CAR Central de Autopeças e Rolamentos Ltda., Auto Norte
Distribuidora de Peças Ltda., Cobra Rolamentos e Autopeças Ltda., Sedim –
Administração e Participações Ltda., Jorge Cerveira Schertel e Pedro Molina
Quaresma (doravante designados como “Acionistas Autopartners”) um
Contrato de Compra e Venda de Quotas, para adquirir a totalidade das quotas
representativas de 100% (cem por cento) do capital social da Sociedade
(“Contrato”);
(a) on June 12, 2015, the Sellers entered into with Distribuidora
Automotiva S.A., CAR Central de Autopeças e Rolamentos Ltda., Auto
Norte Distribuidora de Peças Ltda., Cobra Rolamentos e Autopeças Ltda.,
Sedim – Administração e Participações Ltda., Jorge Cerveira Schertel e
Pedro Molina Quaresma (jointly the “Autopartners Shareholders”)
Quota Purchase and Sale Agreement, to acquire all the quotas
representing one hundred percent (100%)of the corporate capital of the
Company (“Agreement”);
(b) em 25 de setembro de 2015, os Acionistas Autopartners cederam no todo o
Contrato para a Autopartners, conforme facultado na Cláusula 10.3 do Contrato,
permanecendo, no entanto, solidariamente responsáveis pelas obrigações
previstas no Contrato;
(b) On September 25 th , 2015, the Autopartners Shareholders assigned in
whole the Agreement to Autopartners, as permitted in Section 10.3 of the
Agreement, remaining, nevertheless, jointly and severally liable for all
obligations set forth in the Agreement;
(c) em 25 de setembro de 2015, as Partes tiveram conhecimento da instauração
pelo CADE do Processo Administrativo nº 08700.004629/2015-38
(“Processo”), no qual a Sociedade, Affinia Group Participações Ltda., Dana
Indústrias Ltda, Dana Corp, Magneti Marelli Cofap Fabricadora de Peças Ltda.,
Magneti Marelli Cofap Autopeças Ltda., Tenneco Automotive Brasil Ltda. e
algumas pessoas físicas associadas a tais sociedades estão sob investigação para
apurar eventual violação dos artigos 20, incisos I a IV, e 21, incisos I, III e X, da
Lei nº 8.884/94, bem como art. 36, incisos I a IV c/c seu § 3º, inciso I, alíneas
“a”, “b”, “c” e “d” e VIII da Lei nº 12.529/2011, na forma do artigo 69 e
seguintes da Lei nº 12.529/2011; and
(c) on September 25, 2015, the Parties became aware of the CADE
Administrative Procedure No. 08700.004629/2015-38 (“Procedure”), in
which the Company, Affinia Group Participações Ltda., Dana Indústrias
Ltda, Dana Corp, Magneti Marelli Cofap Fabricadora de Peças Ltda.,
Magneti Marelli Cofap Autopeças Ltda., Tenneco Automotive Brasil
Ltda. and certain individuals related to these companies are under
investigations to attest possible violation to article 20, items I through IV,
and article 21, items I, III and X, of Law No. 8.884/94, as well as article
36, item I through IV c/c its paragraph 3, item I, sub-items “a”, “b”, “c”,
and “d”, and item VIII of Law No. 12.529/2011, as provided for in article
69 and following articles of Law No. 12.529/2011; and
(d) em decorrência do Processo e as suas potenciais decorrências, as Partes
resolvem alterar o Contrato, conforme previsto no presente instrumento.
(d) as a result of the initiation of the Procedure and the potential
consequences deriving therefrom, the Parties have agreed to amend the
Agreement, as provided for herein.
POSTO ISSO, em virtude das premissas, obrigações e compromissos mútuos
aqui estabelecidos, as Partes acordam o seguinte:
NOW, THEREFORE, in consideration of the mutual assumptions,
covenants and agreements contained herein, the Parties agree as follows:
I. DEFINIÇÕES
I. DEFINITIONS
1.1 Todos os termos em letras maiúsculas não expressamente definidos ou
alterados pelo presente Aditivo terão os significados previstos no Contrato.
1.1 All capitalized terms not expressly defined or amended by this
Amendment shall have the same meaning ascribed to them in the
Agreement.
1.2. Alterações e inclusões. Pelo presente Aditivo, as Partes concordam em
alterar a definição de “Balanço Patrimonial” e incluir novas definições para os
termos “Agente de Depósito”, “Contrato de Depósito”, “Custos Relacionados” e
“Recursos Depositados” à Cláusula 1.1 do Contrato:
1.2. Amendments and inclusions. By means of this Amendment, the
Parties agree to amend the definition of “Balance Sheet” and include new
definitions for the terms “Escrow Agent”, “Escrow Agreement”, “Escrow
Amounts”, and “Related Costs” to Section 1.1 of the Agreement:
1.1. Termos Definidos. (...)
1.1 Certain Defined Terms. (…)
(...)
(…)
“Balanço Patrimonial” significa o balanço patrimonial da Automotiva de
31 de outubro de 2015.
“Balance Sheet” means the Automotiva’s balance sheet of October
31, 2015.
“Agente de Depósito” significa Banco do Brasil S.A.
“Escrow Agent” means Banco do Brasil S.A.
“Contrato de Depósito” significa o contrato a ser celebrado em 29 de
outubro de 2015 com o Agente de Depósito para regrar o depósito,
aplicação e resgate dos Recursos Depositados.
“Escrow Agreement” means the agreement to be executed on
October 29, 2015 with the Escrow Agent regarding deposit,
investment and withdrawal of the Escrow Amounts.
“Recursos Depositados” significam os valores depositados sob a custódia
do Agente de Depósito, conforme previsto na Cláusula 2.3 (a) (iii) do
Contrato.
“Escrow Amounts” mean the amounts in escrow under custody of
the Escrow Agent, as stated in Section 2.3 (a) (iii) of the Agreement.
“Custos Relacionados” significam (i) quaisquer custos e/ou despesas
relacionadas ao depósito dos Recursos Depositados junto ao Agente de
Depósito, nos termos do Contrato de Depósito, incluindo quaisquer
remunerações devidas ao esse último; e (ii) quaisquer honorários
advocatícios correspondentes à representação da Sociedade e/ou de
qualquer pessoa física associada à Sociedade em relação ao Processo.
“Related Costs” means (i) any costs and/or expenses relating to the
deposit of the Escrow Amounts with the Escrow Agent, under the
Escrow Agreement, including any remuneration owed to the latter;
and (ii) any attorney fees related to the representation of the
Company and/or any individual related to the Company in
connection with the Procedure.
II. DEPÓSITO
II. ESCROW
2.1 Em decorrência de eventuais penalidades que poderão ser aplicadas pelo
CADE com relação ao Processo, as Partes concordam em contratar um Agente de
Depósito que deverá manter os Recursos Depositados em custódia até que seja
arbitrado o valor das multas imputáveis à Sociedade e aos Srs. Jorge Cerveira
Schertel, Antonio Carlos de Paula e Sergio Mattar Montagnoli, dentre quaisquer
outros, se existentes, conforme previsto no Considerando (c) deste Aditivo.
Dessa forma, a redação da Cláusula 2.3 (a).ii é alterada, sendo ainda incluídas as
Cláusulas 2.3 (a).iii, 2.3.1, 2.3.1.i, 2.3.1 .ii, 2.3.1.iii e 2.3.1.1 no Contrato:
2.1 As a result of the possible fines that may be assessed by CADE in
connection with the Procedure, the Parties agree to hire an Escrow Agent
that shall maintain the Escrow Amounts under custody until the amount
of these fines applicable to the Company and Messrs Jorge Cerveira
Schertel, Antonio Carlos de Paula and Sergio Mattar Montagnoli, among
others, if any, as stated in Whereas (c) of this Amendment. Therefore, the
wording of Section 2.3 (a).ii is amended, and Sections 2.3 (a).iii, 2.3.1,
2.3.1.i, 2.3.1 .ii, 2.3.1.iii and 2.3.1.1 are further included in the
Agreement:
2.3. (...)
2.3. (...)
(a) (...)
(a) (...)
i. (...)
i. (...)
ii. No Fechamento, a Compradora, mediante consulta às Vendedoras
celebrará um contrato de câmbio com uma instituição financeira
brasileira autorizada, para realizar o pagamento às Vendedoras, à conta
ou às contas indicadas à Compradora por escrito pelas Vendedoras, de um
valor equivalente ao (a) Preço de Aquisição Base mais (b) o valor, se
houver, dos Lucros Intermediários Estimados ou menos (c) o valor, se
houver, do Prejuízo Intermediário Estimado, menos (d) o valor, se houver,
do Ajuste de Reclamação, (o “Preço de Aquisição Estimado”) e menos (e)
os Recursos Depositados, conforme definido abaixo. A Compradora
fornecerá às Vendedoras cópias dos contratos de câmbio celebrados para
o pagamento do Preço de Aquisição Estimado.
ii. At the Closing, Purchaser shall execute with consultation with
Sellers the foreign exchange agreement with an authorized
Brazilian financial institution for the payment to the Sellers, to the
account or accounts designated to Purchaser in writing by the
Sellers, an amount equal to (a) the Base Purchase Price plus (b) the
amount, if any, of the Estimated Interim Profits or minus (c) the
amount, if any, of the Estimated Interim Losses and minus (d) the
amount, if any, of the Estimated Claim Adjustment (the “Estimated
Purchase Price”), minus (e) the Escrow Amount, as defined below.
Purchaser shall provide the Sellers with copies of the foreign
exchange agreements executed for the payment of the Estimated
Purchase Price.
iii. No Fechamento, a Compradora depositará na conta corrente de
titularidade da Compradora junto ao Agente de Depósito o valor de
R$71.000.000,00 (setenta e um milhões de reais) (“Recursos
Depositados”), que deverá ser liberado à Compradora e/ou às
Vendedoras, conforme previsto na Cláusula 2.3.1 abaixo e no Contrato de
Depósito.
iii. At Closing, Purchaser shall deposit, in a bank account held by
Purchaser before the Escrow Agent the amount of seventy one
million reais (R$ 71,000,000.00) (“Escrow Amounts”), which shall
be released to Purchaser and/or Sellers as provided in Section 2.3.1
below and in the Escrow Agreement.
2.3.1. Recursos Depositados. Os Recursos Depositados serão depositados
junto ao Agente de Depósito, conforme o Contrato de Depósito, cuja cópia
constitui o Anexo 2.3.1 e serão liberados no momento em que uma ou
demais hipóteses a seguir sejam satisfeitas, desde que: (a) a Sociedade e os
Srs Jorge Cerveira Schertel, Antonio Carlos de Paula e Sergio Mattar
Montagnoli negociem para resolver o Processo com o CADE, nos termos
do artigo 85 da Lei nº 12.529/2011 e artigos 179 a 196 da Resolução
CADE nº 01/2012 (o “Acordo com o CADE”); (b) a Sociedade seja a
primeira da lista de pessoas jurídicas envolvidas no Processo a negociar o
Acordo com o CADE, cuja condição se presume satisfeita baseada no
Anexo I ao presente; (c) a Sociedade seja representada por Pinheiro Neto
Advogados durante a negociação do Acordo com o CADE; e (d) as
Vendedoras sejam capazes de demonstrar de forma satisfatória que os 3
(três) indivíduos mencionados acima estão cooperando com o CADE de
forma a possibilitar a implementação do Acordo com o CADE. No contexto
das negociações do Acordo com o CADE:
2.3.1. Escrow Amounts. The Escrow Amounts will be deposited with
the Escrow Agent, pursuant to the Escrow Agreement, copy of which
is Exhibit 2.3.1, and will be released upon satisfaction of one or
more of the following events, provided that: (a) the Company and
Messrs Jorge Cerveira Schertel, Antonio Carlos de Paula and
Sergio Mattar Montagnoli engage in negotiations to settle the
Procedure with CADE pursuant to article 85 of Law No.
12,529/2011 and articles 179 through 196 of Resolution CADE No.
01/2012 (the “Settlement with CADE”); (b) the Company is the first
to negotiate the Settlement with CADE, which condition is presumed
to have been met based on Exhibit I hereto; (c) the Company is
represented by Pinheiro Neto Advogados in the negotiation of the
Settlement with CADE; and (d) Sellers are able to satisfactorily
demonstrate that the three (3) individuals mentioned above are
cooperating with the CADE so as to enable the Settlement with
CADE. In the context of the Settlement with CADE negotiations:
i. caso o CADE: (a) confirme que o valor da contribuição será calculado
com base no faturamento da Sociedade correspondente no segmento do
mercado relevante de amortecedores automotivos; e (b) que as condições
definidas na Cláusula 2.3.1 acima tenham sido satisfeitas, mas não chegue
a uma decisão final quanto ao valor efetivo da multa, o montante
equivalente a R$49.000.000,00 (quarenta e nove milhões de reais),
acrescida de rendimentos, deverá ser imediatamente liberado às
Vendedoras e o valor remanescente, acrescido de rendimentos,
permanecerá mantido a título de Recursos Depositados até uma decisão
final a respeito do valor definitivo da contribuição, que se traduzirá na
homologação do Acordo com o CADE. Todos e quaisquer Custos
Relacionados, incluindo os pagamentos conjuntamente autorizados pelas
Partes nos termos deste instrumento devidos pela pela Sociedade ou
quaisquer das citadas 3 (três) pessoas físicas, ou quaisquer outras, ao
CADE em decorrência das multas aplicadas e contribuições negociadas
no âmbito do Processo, serão cursados mediante a utilização dos Recursos
Depositados, com a expressa exclusão de quaisquer outros; e/ou
i. in the event CADE (a) confirms that the contribution shall be
calculated based on the Company’s revenues associated with the
relevant market of automotive shock absorbers; and (b) the
conditions set forth in Section 2.3.1 above are met, but a final
decision on the actual amount of the fine amount is not reached, an
amount of forty nine million reais (R$ 49,000,000.00), together with
accrued interest, shall be immediately released to the Sellers and the
remaining amount, together with accrued interest, will be kept in as
Escrow Amount until a final decision on the final value of the
contribution, which will be reflected in the Settlement with CADE’s
homologation. Any and all Related Costs, including any payment to
be jointly approved by the Parties as foreseen hereunder that
become due and payable by the Company or by any of the three (3)
individuals or any others in favor of CADE as a result of the penalty
imposed or contributions negotiated under the Procedure shall be
settled with the proceeds of the Escrow Amounts, to the exclusion of
any and all others; and/or
ii. após a determinação do CADE sobre o valor efetivo da penalidade
atribuível à Sociedade e caso tal valor seja inferior ao saldo então
existente dos Recursos Depositados (tanto a totalidade dos Recursos
Depositados ou qualquer montante reduzido nos termos da Cláusula
2.3.1(i) acima), após homologação do Acordo com o CADE, a diferença
entre tais valores deverá ser imediatamente liberada às Vendedoras; e/ou
ii. upon determination by CADE of the actual fine applicable to the
Company and if such amount is lower than the then existing balance
of the Escrow Amounts (either the full Escrow Amounts or any
reduced amount under the provisions of Section 2.3.1(i) above), the
difference between such amounts, upon homologation of the
Settlement with CADE shall be immediately released to Sellers;
and/or
iii. quaisquer valores relacionados aos Recursos Depositados não
liberados às Vendedoras, nos termos das Cláusulas 2.3.1.i e/ou 2.3.1.ii
acima e/ou em decorrência de quaisquer determinação ou penalidades
atribuídos pelo CADE na hipótese de insucesso na implementação do
Acordo com o CADE pela Sociedade e/ou as 3 (três) pessoas físicas ou
quaisquer outros, se aplicável, incluindo por força do não cumprimento
com o disposto no caput da Cláusula 2.3.1, serão liberados à
Compradora.
iii. any amounts related to the Escrow Amounts not released to
Sellers under Sections 2.3.1.i and/or 2.3.1.ii above and/or as a
result of any assessments or penalties by CADE in case of failure of
the Company and/or of the three (3) individuals or any others, if
any, to implement a Settlement with CADE including on account of
any non-compliance of the provisions of Section 2.3.1, shall be
released to Purchaser.
iv. na hipótese de venda da Affinia Group Holdings Inc. (“Affinia”) para
MANN+HUMMEL HOLDING GMBH (“MANN+HUMMEL”), conforme
regrado pelo Plan of Merger celebrado em 13 de agosto de 2015 entre
Affinia, Mann+Hummel e M&H Sub 2015 Inc. (o “Merger Agreement”), ou
referida alienação seja iminente, as Vendedoras poderão determinar que
quaisquer Recursos Depositados devidos às Vendedoras nos termos do
presente Contrato sejam diretamente creditados em favor do Agente de
Pagamento, conforme previsto e definido no Merger Agreement; desde que
a parcela a ser liberada dos Recursos Depositados ao Agente de
Pagamento seja em igual valor àquela que seria liberada caso o
pagamento fosse feito diretamente aos Vendedores.
iv. if, while any Escrow Amounts remain with the Escrow Agent,
Affinia Group Holdings Inc. (“Affinia”) is sold to Mann+Hummel
Holding GmbH (“Mann+Hummel”) pursuant to the Agreement and
Plan of Merger dated as of August 13, 2015 among Affinia,
Mann+Hummel and M&H Sub 2015 Inc. (the “Merger Agreement”),
or such sale is imminent, Sellers may direct that any Escrow
Amounts otherwise payable to Sellers in accordance with the
provisions of this Agreement shall be paid directly to the Paying
Agent under and as defined in the Merger Agreement; provided that
the Escrow Amount to be released to the Paying Agent is of the exact
same amount that would be released to Sellers directly.
2.3.1.1. As Partes concordam em notificar conjuntamente o Agente de
Depósito por escrito para determinar a liberação dos Recursos
Depositados (ou parte deles) em até 5 (cinco) dias contados da ocorrência
de qualquer uma das hipóteses previstas na Cláusula 2.3.1 acima, nos
termos do Contrato de Caução. As Vendedoras reconhecem que as
obrigações de pagamento da Compradora serão consideradas como
cumpridas pela celebração e apresentação da necessárias notificações de
liberação nos termos deste Contrato, independentemente do prazo para
efetivação da liberação e crédito dos Recursos Depositados para a
Vendedora ou para o Agente de Pagamento, conforme o caso, pelo Agente
de Depósito.
2.3.1.1 The Parties undertake to jointly notify in written format the
Escrow Agent determining the release of the Escrow Amounts (or a
portion thereof) within five (5) days counted from the occurrence of
any of the events provided for in Section 2.3.1 above, according to
the terms of the Escrow Agreement. The Sellers recognize that the
payment obligations of the Buyer shall be considered fulfilled upon
execution and submission of the relevant release notifications to the
Escrow Agent, as provided for in this Agreement, regardless of the
timing for actual release and credit of the Escrow Amounts either to
Seller or to the Paying Agent, as the case may be, by the Escrow
Agent itself.
2.2 Resta expressamente acordado entre as Partes que as Vendedoras não serão
chamadas pela Compradora e/ou seus acionistas, direto ou indiretos, a
desembolsar quaisquer recursos adicionalmente aos Recursos Depositados que
se façam porventura necessários à satisfação de quaisquer obrigações
relacionadas ao Processo. Dessa forma, as Partes reconhecem que o desembolso
máximo que a Compradora poderá exigir das Vendedoras com relação à
investigação e/ou os fatos abrangidos pelo Processo está limitada ao montante
dos Recursos Depositados, não cabendo recurso adicional contra as Vendedoras,
em juízo ou fora dele.
2.2 It is hereby expressly agreed by the Parties that the Sellers shall not be
called by Purchaser and/or its, direct or indirect, shareholders to disburse
any other amounts in addition to the Escrow Amounts that may be
eventually required to settle any obligations related to the Procedure.
Therefore, the Parties acknowledge that the maximum disbursement
amount that Purchaser may require from Sellers with respect to the
investigation and/or any facts covered by the Procedure is limited to the
Escrow Amounts, with no further remedy or resource against Sellers, in
court or our-of-court.
2.3. As Vendedoras terão total discricionariedade para direcionar as tratativas
negociais tendentes à implementação do Acordo com o CADE, contanto que o
Acordo com o CADE resulte exclusivamente no pagamento de penalidades
pecuniárias e que nenhuma condição de qualquer natureza seja imposta à
Sociedade com relação ao seu envolvimento em quaisquer negócios ou restrinja,
de qualquer maneira, as atividades da Sociedade, sem prejuízo da prerrogativa
assegurada à Compradora de consultar as Vendedoras e seus assessores legais
sobre as tratativas negociais em curso.
2.3. The Sellers shall have full discretionary powers to direct, negotiate
and implement any such Settlement with CADE provided that such
Settlement with CADE results exclusively in the payment of monetary
penalties and that no conditions of any nature are imposed to the
Company in relation to its engagement in any business, or restrict, by any
means, the activities of the Company, notwithstanding the prerogative of
Purchaser to consult Sellers and their counsel as to conduct and progress
of the negotiations.
2.4 Os Vendedores declaram (i) não ter conhecimento de nenhum fato,
documento, informação ou circunstância referente ao Processo que, se
divulgados à Compradora, poderiam ter afetado com a decisão do Companhia
em concordar com o montante sendo retido em decorrência do Contrato de
Depósito (i.e. os Recursos Depositados) e os montantes a serem liberados aos
Vendedores na forma da Cláusula 2.3.1(i) do Contrato; (ii) os honorários
advocatícios correspondentes à representação da Sociedade e/ou de qualquer
pessoa física associada à Sociedade em relação ao Processo em nenhuma
hipótese será superior a R$ 500.000,00; e (iii) a liberação dos Recursos
Depositados nos termos da Cláusula 2.3.1(iv) do Contrato é permitida pela Lei
Aplicável.
2.4 The Sellers declare that (i) they have no knowledge of any fact,
document, information or circumstance regarding the Procedure that, if
disclosed to Buyer, could have affected it decision to agree to the
amounts being withheld as result of the Escrow Agreement (i.e. the
Escrow Amounts) and the amounts to be released to Sellers under Section
2.3.1(i) of the Agreement; (ii) any attorney fees related to the
representation of the Company and/or any individual related to the
Company in connection with the Procedure will be, under no
circumstances, greater than R$ 500,000.00; and (iii) the release of the
Escrow Amounts to the Paying Agent, as provided for in Section 2.3.1(iv)
of the Agreement is permitted under the Applicable Law.
2.5. Fica expressamente ressalvado o direito de regresso às Vendedoras, ou à
sucessora destas, de buscar compensação financeira contra o Sr Jorge Cerveira
Schertel, em juízo ou fora dele, com relação aos prejuízos ensejados por atos ou
omissões cuja prática venha a restar comprovada no curso do Procedimento.
2.5. It is hereby assured the right of recourse by Sellers or their successors
to seek financial compensation against Mr. Jorge Cerveira Schertel, in
court or out-of-court, with respect to the damages proved during the
Procedure to have been caused by their acts or omissions.
2.6. Unicamente para fins de agilização da abertura da conta garantia junto ao
Agente de Depósito, as Vendedoras nomeiam WIX Filtros do Brasil Ltda.,
sociedade limitada, com sede na cidade de São Paulo, Estado de São Paulo, na
Alameda Ribeirão Preto, nº 130, 3º andar, conjunto 31, Bela Vista, CEP 01331000, inscrita no Cadastro Nacional da Pessoa Jurídica do Ministério da Fazenda
(CNPJ/MF) sob nº 22.268.069/0001-33 9 (“Wix Brasil”), para constar do
Contrato de Depósito como legitimada a firmar, juntamente com Autopartners,
quaisquer instruções de aplicação e saque dos recursos ali depositados. A
exclusivo critério das Vendedoras, tão logo a documentação exigida pelo
Agente de Depósito tenha sido a ele disponibilizada, a Affinia Canada poderá
solicitar a substituição da Wix Brasil, hipótese em que a própria Affinia Canada,
juntamente com Autopartners, passará a firmar as referidas instruções de
aplicação e saque dos referidos recursos.
2.6. Solely for purposes of expediting the opening up of the escrow
account with the Escrow Agent, Sellers hereby appoint WIX Filtros do
Brasil Ltda., limited company, with headquarters in the city of São Paulo,
state of São Paulo, at Alameda Ribeirão Preto, No. 130, 3 rd floor, suite 31,
Bela Vista, CEP 01331-000, enrolled in CNPJ/MF under number
22.268.069/0001-33 9 (“Wix Brasil”), which, under the Escrow
Agreement, shall, acting jointly with Autopartners, be legitimized to
instruct the investment and withdrawal of funds deposited therein. At the
sole discretion of Sellers, as soon as the relevant documents have been
furnished to the Escrow Agent, Affinia Canada may ask for replacement of
Wix Brasil, in which case Affinia Canada itself shall theretofore execute,
together with Autopartners, any such investment and withdrawal
instructions with regard to the funds deposited therein.
III. FECHAMENTO
III. CLOSING
3.1 Em virtude do Processo e das disposições contidas neste Aditivo, as Partes
concordam em postergar a data de Fechamento para 30 de outubro de 2015,
dessa forma alterando a redação da Cláusula 3.2 do Contrato:
3.1 Due to the Procedure and the covenants contained in this
Amendment, the Parties agree to postpone the Closing to October 30th,
2015, therefore amending Section 3.2 of the Agreement:
3.2. Data e Local do Fechamento. O Fechamento ocorrerá em 30 de
outubro de 2015 (exceto pelas condições que por sua natureza devam ser
cumpridas ou renunciadas na Data de Fechamento), às 10h00m, no
escritório do Pinheiro Neto Advogados, na Rua Hungria, 1100, na cidade
de São Paulo, Estado de São Paulo, Brasil, ou em outro local e/ou data
previamente acordados por escrito pela Compradora e pelas Vendedoras
(“Data de Fechamento”).
3.2 Date and Place of Closing. The Closing shall take place on
October 30 2015 (other than those conditions that by their nature
are to be satisfied or waived on the Closing Date), at 10:00 am, at
the offices of Pinheiro Neto Advogados, at Rua Hungria, 1100, in
the City of São Paulo, State of São Paulo, Brazil, or in any other
location and/or time previously agreed upon in writing by the
Purchaser and the Sellers (the “Closing Date”).
IV. OUTRAS DISPOSIÇÕES E EFEITO VINCULANTE
IV. OTHER PROVISIONS AND BINDING EFFECT
4.1. Todas as Cláusulas do Contrato que não foram expressamente alteradas por
este Aditivo permanecem válidas e vinculativas para as Partes.
4.1. All Sections of the Agreement that were not expressly amended by
this Amendment shall remain valid and binding upon the Parties.
V. CONFLITOS
V. DISPUTES
5.1. Resolução de Conflitos. Todo e qualquer conflito, controvérsia e/ou
reclamação originado deste Aditivo será dirimido conforme previsto no
Capítulo XII do Contrato.
5.1. Dispute Resolution. Any and all dispute, controversy and/or claim
arising out of this Amendment shall be resolved as provided for in
Chapter XII of the Agreement.
São Paulo, 28 de outubro de 2015
São Paulo, October 28, 2015
AFFINIA CANADA ULC
/s/ David E. Sturgess
AFFINIA SOUTHERN HOLDINGS
/s/ David E. Sturgess
AUTOPARTNERS PARTICIPAÇÕES S.A.
/s/ Pedro Molina Quaresma
/s/ Jorge Cerveira Schertel
AFFINIA AUTOMOTIVA LTDA.
/s/ Sérgio Hemmel Hessel
/s/ Jorge Cerveira Schertel
AFFINIA GROUP INC.
/s/ David E. Sturgess
Anexo 2.3.1 – Contrato de
Depósito
Exhibit 2.3.1 – Escrow
Agreement
Exhibit 99.1
For Immediate Release
Contact: Steve Klueg
Senior Vice President &
Chief Financial Officer
(704) 864-6711
[email protected]
Heather Tamol
Director, Public Relations
(704) 926-1326
[email protected]
AFFINIA GROUP CLOSES ON TRANSACTIONS
OF AFFINIA SOUTH AMERICA OPERATIONS
GASTONIA, N.C. – November 4, 2015 – Affinia Group Inc., an innovative global leader in the design, manufacture, distribution and marketing of industrial
grade products and services, announced today that the Company has closed the final remaining portion of the sale of its Affinia South America (ASA)
operations. The sales, which were announced earlier this year, allow Affinia to focus on high-growth opportunities and leadership within global filtration.
Three separate buyers will take ownership of Affinia’s operations in Brazil, Argentina and Uruguay.
Affinia Group Inc. is an innovative global leader in the design, manufacture, distribution and marketing of industrial grade products and services, including
extensive offerings of aftermarket parts for automotive and heavy-duty vehicles. With approximately $1 billion in annual revenue, Affinia has operations in
North and South America, Europe, and Asia. For more information, visit www.affiniagroup.com.
###
Exhibit 99.2
Unaudited Pro Forma Financial Statements
The following unaudited pro forma financial statements of Affinia Group Intermediate Holdings Inc. (the “Company”) give effect to the disposition of the
Company’s Affinia South America (“ASA”) segment, which is accounted for as a discontinued operation under Accounting Standards Codification 205,
“Presentation of Financial Statements” (“ASC 205”). The Company’s ASA segment is comprised of its operations in Brazil, Argentina and Uruguay. ASA’s
operations in Brazil consist of Pellegrino Distribuidora de Autopecas Ltda. (“Pellegrino”) and Affinia Automotiva Ltda. (“Automotiva”), which are
collectively referred to as “ASA Brazil.” In the second quarter of 2015, the ASA Brazil operations met the criteria for assets held-for-sale under ASC 205 and
were classified as a component of discontinued operations in the Company’s Form 10-Q for the period ended June 30, 2015. The operations of Argentina and
Uruguay did not meet the held-for-sale criteria; thus, the results of operations of those businesses were included within continuing operations. Subsequent to
June 30, 2015, the Company completed the disposal of all of ASA’s operations to multiple buyers. The pro forma financial information contained herein
reflects the entire ASA segment as discontinued operations for all periods presented. The unaudited pro forma condensed balance sheet assumes the of the
Company’s ASA segment on December 31, 2014. Such pro forma information is based upon the historical balance sheet data of the Company as of that date.
The unaudited pro forma condensed statement of operations gives effect to the of the Company’s ASA segment for the year ended December 31, 2014 as if
the disposition occurred on January 1, 2014. These unaudited pro forma financial statements should be read in conjunction with the historical financial
statements and notes thereto contained within the Company’s Form 10-K for the year ended December 31, 2014 and Form 10-Q for the quarterly period ended
June 30, 2015.
(Dollars in millions)
2015 - As Filed
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Other income and expense, net
Interest expense
Income from continuing operations before, income tax provision, and
noncontrolling interest
Income tax provision
Net income from continuing operations
$
$
465
(352)
113
(70)
43
(1)
(26)
16
(9)
7
Six Months Ended June 30,
ASA Adjustments
$
$
(21)
15
(6)
3
(3)
1
—
(4)
1
(3)
2015 Pro Forma
$
$
444
(337)
107
(67)
40
(2)
(26)
12
(8)
4
(Dollars in millions)
2014 - As Filed
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Other income and expense, net
Interest expense
Income from continuing operations before, income tax provision, and
noncontrolling interest
Income tax provision
Net income from continuing operations
$
$
1,396
(1,056)
340
(199)
141
(13)
(56)
72
(19)
53
Year Ended December 31,
ASA Adjustments
$
$
(421)
338
(83)
52
(31)
—
—
(31)
10
(21)
2014 Pro Forma
$
$
975
(718)
257
(147)
110
(13)
(56)
41
(9)
32
(Dollars in millions)
Assets
Current assets:
Cash and cash equivalents
Restricted cash
Trade accounts receivable, less allowances of $4 million at June 30, 2015 and $4 million at
December 31, 2014
Inventories, net
Current deferred taxes
Prepaid taxes
Other current assets
Current assets of discontinued operations
Total current assets
Property, plant, and equipment, net
Goodwill
Other intangible assets, net
Deferred financing costs
Deferred income taxes
Investments and other assets
Total assets
Liabilities and shareholder’s deficit
Current liabilities:
Accounts payable
Notes payable
Other accrued expenses
Accrued payroll and employee benefits
Current liabilities of discontinued operations
Total current liabilities
Long-term debt
Deferred employee benefits and other noncurrent liabilities
Total liabilities
Contingencies and commitments
Shareholder’s deficit:
Common stock, $.01 par value, 1,000 shares authorized, issued and outstanding
Additional paid-in capital
Accumulated deficit
Accumulated other comprehensive loss
Total shareholder’s deficit of the Company
Noncontrolling interest in consolidated subsidiaries
Total shareholder’s deficit
Total liabilities and shareholder’s deficit
(a)
(b)
(c)
June 30,
2015
As Filed
ASA
Adjustments
June 30,
2015
Pro Forma
$
$
$
$
$
59
10
96
178
12
14
14
157
540
109
3
49
12
103
6
822
107
206
55
15
46
429
616
14
1,059
—
456
(616)
(78)
(238)
1
(237)
$ 822
$
$
$
78(a)
—
(6)
(9)
—
(1)
—
(157)(b)
(95)
(2)
—
—
—
(1)
—
(98)
(3)
—
2
(1)
(46)(b)
(48)
—
—
(48)
—
—
(50)(c)
—
(50)
—
(50)
(98)
$
$
$
137
10
90
169
12
13
14
—
445
107
3
49
12
102
6
724
104
206
57
14
—
381
616
14
1,011
—
456
(666)
(78)
(288)
1
(287)
724
Includes proceeds on sale of $63 million
Current assets and current liabilities of discontinued operations adjusted out as pro forma effects of the disposition taking place are already reflected.
Includes loss on sale of ASA businesses of $50 million