MILWAUKEE--(BUSINESS WIRE)--
Actuant Corporation (NYSE:ATU) announced today the signing of a
definitive agreement to sell its Viking SeaTech (“Viking”) business to
Acteon Group Limited (“Acteon”), a global subsea services business, for
approximately $12 million. Actuant has also signed a definitive
agreement to purchase Mirage, a $12 million revenue provider of
industrial and energy maintenance tools, from Acteon for approximately
$16 million, plus potential future performance based consideration. The
two transactions will close simultaneously, and are subject to customary
regulatory approvals and closing conditions.
Randy Baker, Actuant President and Chief Executive Officer, stated, “The
decision to divest Viking was not taken lightly, but it is consistent
with our strategy to concentrate our energy offerings where we can
provide the most value over the long term. It also helps to simplify and
stabilize our portfolio by significantly limiting exposure to upstream,
offshore oil & gas.”
The Viking business generated approximately $20 million in revenue
during the past twelve months. In conjunction with the sale, Actuant
expects to record after tax charges in the range of $110-125 million,
including a cash charge of approximately $28 million from unwinding
certain rental fleet operating leases, including those resulting from
the mid-2014 sale and leaseback transaction. The remaining charges
largely consist of non-cash items including the write down of Viking
assets to their net realizable value and the recognition in earnings of
the cumulative effect of foreign currency rate changes since
acquisition. These charges will be incurred during the fourth quarter of
fiscal 2017 and early in fiscal 2018, upon closing.
“The Mirage business, headquartered in the UK, is a strong complement to
Hydratight. It broadens its product line offerings, most notably in the
flange facing and hot tapping categories, while providing additional
rental and service opportunities,” Baker continued.
“We are pleased to have reached this mutually beneficial agreement with
Acteon. On a pro-forma basis, Actuant’s trailing twelve month adjusted
earnings per share would have been approximately $0.15-0.16 higher,
taking into account Viking’s performance in a very challenging upstream
market and the accretion associated with Mirage. We believe these
proactive portfolio management actions will improve overall shareholder
value.”
About Actuant
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.
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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170816006112/en/
Actuant Corporation
Karen Bauer
Communications & Investor
Relations Leader
262-293-1562
Source: Actuant Corporation
Released August 16, 2017