Actuant To Sell Engineered Components & Systems Segment To One Rock Capital

(RTTNews) - Actuant Corp.(ATU) said Tuesday that it agreed to sell Engineered Components & Systems segment, excluding Actuant's Cortland U.S. business, to private equity firm One Rock Capital Partners for about $214.5 million.

The businesses included in this segment and SPA are Power-Packer, Elliott Manufacturing, Weasler Engineering, CrossControl, Maximatecc, and Gits Manufacturing.

Actuant anticipates recording a non-cash impairment & divestiture charge of approximately $300 million in the fourth quarter of fiscal 2019. Actuant said it expects to use the proceeds from the sale to continue driving organic growth in its existing Enerpac Tools and Services platform, reduce debt, pursue complementary strategic tools acquisitions, and return excess capital to shareholders through opportunistic share repurchases.

Completion of the transaction is expected to close in the fourth quarter of calendar 2019.

The company said it maintained its outlook provided on June 26??, 2019 but updated its guidance for the fourth quarter and fiscal year 2019 to reflect its continuing operations.

For the fourth-quarter, Actuant now expects adjusted earnings per share in the range of $0.16 - $0.20, and sales of $167 million -$173 million.

Actuant now anticipates adjusted earnings per share to be in the range of $0.71 and $0.75; sales of $664 million to $669 million, with annual core sales growth between 4% and 8% for fiscal year 2019.