Manitex Int'l (MNTX) Sells Liftking Unit in $14M Deal
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Manitex International, Inc. (Nasdaq: MNTX) announced that it has sold its Liftking subsidiary to a newly formed subsidiary of Mi-Jack Products Inc., ("Mi-Jack") for $14.0 million. Mi-Jack, based in Hazel Crest, IL, is a privately-held manufacturer and service provider for rubber and track mounted gantry cranes and industrial cranes in support of the Intermodal and Industrial markets.
The transaction, which closed September 30, 2016, yielded net cash proceeds of approximately $13.3 million to Manitex International, Inc., which the Company will use for further pay downs of its North American bank debt. Trailing 12 months (TTM) revenue and EBITDA for Liftking were approximately $18 million and $2 million, respectively. Liftking was originally acquired by Manitex International in November 2006 for consideration of $7.1 million.
David J. Langevin, Chairman and CEO of Manitex International, Inc., commented, "The divestiture of Liftking is another important step forward in our corporate program to focus our resources on our higher margin core lifting businesses and to reduce the Company's indebtedness which remain our top corporate priorities this year and heading into 2017. Liftking is a solid strategic fit with Mi-Jack and this transaction should be of substantial benefit to both parties. We are deeply appreciative of the efforts of the entire Liftking team and are confident that Mi-Jack will be an excellent owner and operator of this business."
In connection with the closing of the transaction Manitex International will record in its third quarter results certain allocated non-cash charges for goodwill and intangible assets relating to the disposal of a portion of its Lifting segment, and an impairment of its investment in Lift Ventures, a joint venture Company that distributes certain remaining inventory of former Liftking and former Load King products. These charges are expected to be in approximate ranges of $6.5-$7.0 million and $5.5-$6.0 million, respectively.
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