The Manitowoc Co. Inc. announced yesterday a definitive purchase agreement to sell the stock of its marine segment to Fincantieri Marine Group Holdings Inc. Aerospace and defense giant Lockheed Martin Corp. has agreed to be a minority investor in the proposed acquisition.
The transaction, which is valued at $120 million (subject to certain closing adjustments), is an all-cash deal that is anticipated to close at the end of 2008. The sale is subject to customary clearances for transactions of this type including U.S. antitrust and certain U.S. security agencies.
Manitowoc's marine group is a full-service shipbuilding, ship repair, and ship conversion organization that operates facilities in Sturgeon Bay, Wis., Marinette, Wis., and Cleveland, Ohio. Serving a broad base of commercial, military, and government customers that operate vessels both on and off the Great Lakes, MMG employs a workforce of 1,587 at its Bay ship building, marinette marine, and Cleveland ship repair operations.
Manitowoc's president and CEO Glen Tellock called the company's marine segment its "legacy business," having helped to establish a tradition of integrity, commitment to stakeholders, and passion for excellence.
"This transaction expands the opportunities for MMG to continue its industry leadership in the future," Tellock said. "More importantly, it will allow MMG to become part of a growing, global organization that is exclusively focused on commercial and military shipbuilding."
Assuming the sale is completed of by the end of the year, the transaction is expected to generate a per-share, after-tax gain of approximately $0.60. Manitowoc intends to use the after-tax proceeds for general corporate purposes, which include pay down of debt anticipated as a result of the pending acquisition of Enodis.