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Manitex Sells CVS Subsidiary as Part of Corporate Program
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Manitex International, Inc. (MNTX - Free Report) announced the sale of its subsidiary, CVS Ferrari, S.r.l. to Italy based privately-held manufacturers and service providers for terminal handling equipment globally, BP S.r.l. and NEIP III S.p.A. The deal was concluded for $5 million in cash and the assumption of $14 million of net CVS debt. This divestment was in line with the company’s strategy to focus on its higher margin core lifting businesses as well as cutting down debt.
CVS came under the Manitex after its acquisition by the latter in Jul 2011, for $4 million in cash and the assumption of $1 million in CVS debt. At that time, CVS’ trailing 12 months (TTM) revenue and EBITDA were approximately $50 million and $2 million, respectively.
As part of the deal, Manitex retained the operations of CVS's Valla division, which offers a full range of electric precision pick and carry cranes. Earlier in Mar 2016, Manitex had disclosed the sale of the CVS's terminal tractor product line to a related party that generated cash proceeds of $3 million and resulted in a gain of $2 million. Further in October, Manitex sold its Liftking subsidiary for $14.0 million.
These divestitures are part of Manitex’s corporate program to focus resources on its higher margin core lifting businesses while aiding it reduce its indebtedness which tops the company’s corporate priorities heading into 2017. In connection with the closing of the CVS Ferrari transaction, the company anticipates 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. These charges are expected to be approximately $7 to $8 million in aggregate. Manitex remains confident that the measures implemented to rationalize production, lower costs, strengthening balance sheet and enhancing presence in its served markets will lead to future growth.
Manitex’s share price has gained 22.8%, underperforming the Zacks categorized Machinery-General Industrial subindustry which has witnessed a gain of 23.4% year to date.
Manitex currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks in the sector include The Middleby Corporation (MIDD - Free Report) , Nordson Corporation (NDSN - Free Report) and Broadwind Energy, Inc. (BWEN - Free Report) . Middleby Corporation has a positive average earnings surprise of 15.93% in the last four quarters. It has witnessed a 3% increase in its earnings estimates in the past 60 days. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Nordson generated a positive average earnings surprise of 15.40% in the trailing four quarters. Its earnings estimates have gone up 3% in the last 60 days. Broadwind Energy’s estimates have also moved north from a loss per share of 6 cents per share to 3 cents per share. Both Nordson and Broadwind also carry a Zacks Rank #2.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017? Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>
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Manitex Sells CVS Subsidiary as Part of Corporate Program
Manitex International, Inc. (MNTX - Free Report) announced the sale of its subsidiary, CVS Ferrari, S.r.l. to Italy based privately-held manufacturers and service providers for terminal handling equipment globally, BP S.r.l. and NEIP III S.p.A. The deal was concluded for $5 million in cash and the assumption of $14 million of net CVS debt. This divestment was in line with the company’s strategy to focus on its higher margin core lifting businesses as well as cutting down debt.
CVS came under the Manitex after its acquisition by the latter in Jul 2011, for $4 million in cash and the assumption of $1 million in CVS debt. At that time, CVS’ trailing 12 months (TTM) revenue and EBITDA were approximately $50 million and $2 million, respectively.
As part of the deal, Manitex retained the operations of CVS's Valla division, which offers a full range of electric precision pick and carry cranes. Earlier in Mar 2016, Manitex had disclosed the sale of the CVS's terminal tractor product line to a related party that generated cash proceeds of $3 million and resulted in a gain of $2 million. Further in October, Manitex sold its Liftking subsidiary for $14.0 million.
MANITEX INT INC Price
MANITEX INT INC Price | MANITEX INT INC Quote
These divestitures are part of Manitex’s corporate program to focus resources on its higher margin core lifting businesses while aiding it reduce its indebtedness which tops the company’s corporate priorities heading into 2017. In connection with the closing of the CVS Ferrari transaction, the company anticipates 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. These charges are expected to be approximately $7 to $8 million in aggregate. Manitex remains confident that the measures implemented to rationalize production, lower costs, strengthening balance sheet and enhancing presence in its served markets will lead to future growth.
Manitex’s share price has gained 22.8%, underperforming the Zacks categorized Machinery-General Industrial subindustry which has witnessed a gain of 23.4% year to date.
Manitex currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks in the sector include The Middleby Corporation (MIDD - Free Report) , Nordson Corporation (NDSN - Free Report) and Broadwind Energy, Inc. (BWEN - Free Report) . Middleby Corporation has a positive average earnings surprise of 15.93% in the last four quarters. It has witnessed a 3% increase in its earnings estimates in the past 60 days. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Nordson generated a positive average earnings surprise of 15.40% in the trailing four quarters. Its earnings estimates have gone up 3% in the last 60 days. Broadwind Energy’s estimates have also moved north from a loss per share of 6 cents per share to 3 cents per share. Both Nordson and Broadwind also carry a Zacks Rank #2.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017? Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>