Actuant agrees to divest Viking SeaTech, acquire Mirage Machines
Actuant Corporation announced the signing of a definitive agreement to sell its Viking SeaTech business to Acteon Group Limited, a global subsea services business, for approximately $12M. Actuant has also signed a definitive agreement to purchase Mirage, a $12M revenue provider of industrial and energy maintenance tools, from Acteon for approximately $16M, plus potential future performance based consideration. The two transactions will close simultaneously, and are subject to customary regulatory approvals and closing conditions. The Viking business generated approximately $20M in revenue during the past twelve months. In conjunction with the sale, Actuant expects to record after tax charges in the range of $110M-$125M, including a cash charge of approximately $28M 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. "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 15c-16c 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."