Actuant To Divest Viking SeaTech And Acquire Mirage Machines

(RTTNews) - Actuant Corp. (ATU) said that it agreed to sell its Viking SeaTech business to Acteon Group Limited, a global subsea services business, for about $12 million.

Actuant has also signed a definitive agreement to purchase Mirage from Acteon for approximately $16 million, 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 $20 million in revenue during the past twelve months. In conjunction with the sale, Actuant expects to record after tax charges in the range of $110-125 million, including a cash charge of approximately $28 million 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.