TPI Composites, Inc. completed the sale and transfer of its ownership interests in two subsidiaries, TPI Kompozit 1 and TPI Kompozit 2, collectively known as TPI Türkiye.
The sale included assets and operations of wind blade manufacturing facilities and a field service inspection and repair business in Izmir, Türkiye.
Pro forma financial information was prepared to reflect the impact of the transaction on the company's financials.
Impact on EMEA Segment
The majority of the Company's EMEA segment was comprised of TPI Türkiye, indicating a significant change in regional operations.
Pro Forma Adjustments
The adjustments made include a non-cash gain on the sale, release of outstanding intercompany agreements, exclusion of historical warranty obligations, and handling of liabilities.
Financial Position Changes
The unaudited pro forma balance sheet shows the removal of TPI Türkiye's assets and liabilities, resulting in a different stockholders' deficit.
- The sale and transfer of TPI Türkiye have reshaped the Company's financial landscape, with significant adjustments made to reflect the change in ownership.
- The pro forma financial statements demonstrate the potential impact on the company's balance sheet and operations, highlighting the importance of such transactions.
The sale of TPI Türkiye marks a strategic move for TPI Composites, Inc., with notable implications for its financial reporting and strategic focus moving forward.