Actuant Signs Agreements to Divest Viking SeaTech and Acquire Mirage Machines, Ltd.
August 16 2017 - 7:20PM
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.
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Actuant CorporationKaren BauerCommunications & Investor
Relations Leader262-293-1562
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