Manitex offloads CVS
Manitex has sold its Italian based CVS Ferrari port handling business to two Italian companies, equipment manufacturer BP and private equity fund NEIP III for $5 million in cash and the assumption of $14 million of net debt.
Manitex purchased CVS July 2011 after renting the business for a year, after the company had gone into administration. In total it claims to have paid around $4 million in cash, plus the assumption of $1 million in debt. Annual revenues are currently around $50 million with profit before interest and tax of $2 million. In March Manitex sold the CVS terminal tractor product line to Terex for $3 million in cash.
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Manitex chief executive David Langevin said: “The divestiture of CVS is another important step forward in our corporate programme to focus our resources on our higher margin core lifting businesses and to reduce the company’s indebtedness which remain our top corporate priorities heading into 2017. CVS is a solid strategic fit with the purchasers and this transaction should be of substantial benefit to all parties. We are deeply appreciative of the efforts of the entire CVS team and are confident that purchasers will be an excellent owners and operators of this business.”
Manitex said that its fourth quarter results will include non‐cash charges for goodwill and intangible assets relating to the disposal of between $7 and $8 million. The company also owns two other Italian based business PM Group and Valla which remain core elements of the Manitex business.