Actuant Divests Businesses
MILWAUKEE--(BUSINESS WIRE)-- Actuant Corporation (NYSE:ATU) announced today that it has completed the sale of its Acme Aerospace business to TransDigm Group, Inc. (NYSE:TDG). Actuant's Acme Aerospace business, reported within the Engineered Solutions segment, designs and manufactures lightweight, high power battery chargers, power supplies and backup power systems including fiber nickel cadmium (FNC) batteries for use in commercial and military aerospace applications. The business has annual revenues of approximately $18 million.
Robert C. Arzbaecher, Actuant Chief Executive Officer commented, "We are pleased to have completed the divestiture of this business to a strategic buyer whose complementary product offerings provide a clear fit for Acme Aerospace."
In addition, the Company announced that it has reached an agreement to sell its BH Electronics business which provides custom dash panels and electrical wiring harnesses to recreational boat OEMs. The Company expects to complete this transaction by the end of the fiscal year. BH Electronics is included within the Harsh Environment Electrical product line in Actuant's Electrical Segment and has annual revenues of approximately $15 million.
Arzbaecher continued, "These transactions are part of our portfolio management efforts to proactively focus on platforms where we can build meaningful positions and support our strategic growth initiatives."
Total cash proceeds from these transactions approximate $40 million and will be used to reduce Actuant's outstanding indebtedness. The Company expects to record an aggregate net gain on the divestitures of approximately $15 million.
About Actuant
Actuant, headquartered in Butler, Wisconsin, is a diversified industrial company with operations in more than 30 countries. The Actuant businesses are market leaders in branded hydraulic and electrical tools and supplies, umbilical, rope and cable solutions as well as highly engineered position and motion control systems. Since its creation through a spin-off in 2000, Actuant has grown its sales from $482 million to $1.66 billion in fiscal 2008. The Company employs a workforce of approximately 6,200 worldwide. Actuant trades on the NYSE under the symbol ATU.
Safe Harbor
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, 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.
Source: Actuant Corporation
Released July 27, 2009