Manitex Sells CVS Ferrari, Keeps Valla Cranes
Manitex International Inc. has sold its CVS Ferrari, S.r.l. subsidiary to two Italian companies BP S.r.l. and NEIP III S.p.A. for $5 million in cash, and the assumption of $14 million of net CVS debt.
CVS was originally acquired by Manitex in July 2011 for consideration of $4 million in cash, and the assumption of $1 million in CVS debt. Trailing 12 months revenue and EBITDA for CVS were approximately $50 million and $2 million, respectively, at the time of sale. The buyers are privately-held manufacturers and service providers for terminal-handling equipment. As part of the transaction, Manitex retained the operations of CVS’s Valla division, which offers a full range of electric precision pick-and-carry cranes. The transaction closed December 22, 2016.
Additionally, Manitex had previously disclosed the sale of the CVS’s terminal tractor product line to a related party which occurred March 3, 2016, and yielded cash proceeds of $3 million (inclusive of VAT), and resulted in a gain of $2 million.
David Langevin, chairman and CEO of Manitex, said: “The divestiture of CVS 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 heading into 2017. CVS is a solid strategic fit with the purchasers, and this transaction should be of substantial benefit to all parties. We are deeply appreciative of the efforts of the entire CVS team and are confident that purchasers will be an excellent owners and operators of this business.”
In connection with the closing of the transaction Manitex expects to record in its fourth quarter and year end 2016 results certain allocated non-cash charges for goodwill and intangible assets relating to the disposal of a portion of its CVS segment, which are expected to be approximately $7 million to $8 million in aggregate.