Manitowoc Sells Marine Business
On Jan. 2, the Manitowoc Company, Inc. (NYSE:MTW) announced the completion, effective as of December 31, 2008, of the previously announced sale of its Marine segment to Fincantieri Marine Group Holdings, Inc., a subsidiary of Fincantieri - Cantieri Navali Italiani SpA (Fincantieri). The net purchase price in the all-cash deal was approximately $120m. Manitowoc intends to use the after-tax proceeds for debt reduction and other corporate purposes.
"We are now entirely focused on two strategic lines of business: cranes and commercial foodservice equipment," said Manitowoc CEO Glen E. Tellock. "We have built market leadership positions in both of these global markets, and now will be able to direct all of our efforts on growing these two businesses even further. While the company was founded as a shipbuilder in 1902, in recent years we have pursued growth in markets where we have stronger competitive positions and opportunities."
In 2007, the Marine segment had sales of $321m and operating earnings of $26m. The transaction is expected to generate a 2008 per-share, after-tax gain of approximately $.60.
Merrill Lynch & Co. served as financial advisor to Manitowoc in this transaction.