Actuant initiated process to divest Engineered Components & Systems segment
Actuant announced last night that the company intends to solely focus on its Industrial Tools & Services segment and pursue a standalone strategy as a pure play industrial tools and services company. To achieve its objective, and consistent with its recent sale of Precision-Hayes and announced intent to sell the Cortland U.S. business, the company has initiated a process to "maximize the value" of its remaining Engineered Components & Systems segment through a potential divestiture of the segment. Randy Baker, President and CEO er of Actuant, said, "Our transformation of Actuant over the last two years has resulted in a more focused, efficient company with a reinvigorated organic growth strategy. As part of these efforts, we completed an operational realignment at the end of fiscal 2018, creating two separate operating segments with independent strategies and footprints. Together with our Board of Directors and outside advisors, we determined that the prudent next step to best unlock the value of Actuant is to solely focus on our IT&S segment." As a result of the company's intent to divest EC&S, Actuant is currently performing impairment analyses of the EC&S long-lived assets which could result in the company recording non-cash impairment charges in future periods, reflecting a write down of the EC&S net assets to their net realizable value.