Actuant Reaches Definitive Agreement to Sell Electrical
MILWAUKEE--(BUSINESS WIRE)-- Actuant Corporation (NYSE:ATU) announced today that it has reached a definitive agreement to sell its Electrical Segment to Sentinel Capital Partners for $258 million in cash, subject to working capital and other closing adjustments. The transaction is expected to be completed within 45 days, subject to customary closing conditions.
In June 2013, Actuant announced that its Board of Directors had authorized a plan to commence a divestiture process for the Electrical Segment in order to refocus on the remaining businesses and better position the Company to take advantage of its core competencies, current business model and global growth trends. Since that announcement, the Electrical Segment’s results have not been included in Actuant’s continuing operations and therefore, the pending sale transaction has no impact on Actuant’s sales and earnings guidance for fiscal 2014.
The Electrical Segment primarily serves the retail do-it-yourself, marine, industrial OEM and wholesale electrical markets with a variety of products under the Gardner Bender, Marinco, Mastervolt, Acme and Turner Electric brand names. In fiscal 2013, it had sales of approximately $300 million. The segment employs approximately 1,000 and operates from six locations across the globe with its headquarters in Menomonee Falls, Wisconsin.
Robert W. Baird & Co. served as Actuant’s financial advisor for this transaction and McDermott, Will and Emery, LLP served as legal counsel.
Actuant Corporation is a diversified industrial company serving customers from operations in more than 30 countries. The Actuant businesses are leaders in a broad array of niche markets including branded hydraulic tools and solutions; specialized products and services for energy markets and highly engineered position and motion control systems. The Company was founded in 1910 and is headquartered in Menomonee Falls, Wisconsin. Actuant trades on the NYSE under the symbol ATU. For further information on Actuant and its businesses, visit the Company's website at www.actuant.com.
Certain of the above comments represent forward-looking statements made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995. Management cautions that these statements are based on current estimates of future performance and are highly dependent upon a variety of factors, which could cause actual results to differ from these estimates. Actuant’s results are also subject to general economic conditions, variation in demand from customers, the impact of geopolitical activity on the economy, continued market acceptance of the Company’s new product introductions, the successful integration of acquisitions, the completion of the Electrical segment sale, restructuring, operating margin risk due to competitive pricing and operating efficiencies, supply chain risk, material and labor cost increases, foreign currency fluctuations and interest rate risk. See the Company’s Form 10-K filed with the Securities and Exchange Commission for further information regarding risk factors. Actuant disclaims any obligation to publicly update or revise any forward-looking statements as a result of new information, future events or any other reason.
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Source: Actuant Corporation
Released October 31, 2013