Manitex International, Inc. (MNTX - Free Report) has sold its Liftking subsidiary for $14.0 million to focus on its higher margin core lifting businesses as well as cutting down debt. The net cash proceeds of approximately $13.3 million from the sale will be utilized to pay downs of its North American bank debt. Manitex shares gained 2.36% on the announcement.
Liftking has been scooped up by a newly formed subsidiary of Mi-Jack Products Inc. Based in Hazel Crest, IL, Mi-Jack is a privately held manufacturer and service provider for rubber and track mounted gantry cranes and industrial cranes catering to Intermodal and Industrial markets.
Liftking came under the Manitex umbrella following its acquisition in Nov 2006 for a consideration of $7.1 million. The trailing 12-month (TTM) revenue and EBITDA for Liftking were approximately $18 million and $2 million, respectively. In connection with the divestiture, Manitex will record in its third-quarter results certain allocated non-cash charges for goodwill and intangible assets. This will be in relation to the disposal of a portion of its Lifting segment, and an impairment of its investment in Lift Ventures, a joint venture Company that distributes certain remaining inventory of former Liftking and former Load King products. These charges are expected to be in approximate ranges of $6.5-$7.0 million and $5.5-$6.0 million, respectively.
MANITEX INT INC Price