Crane and specialized equipment manufacturer Manitex International said it has sold its CVS Ferrari subsidiary to Italian companies BP and NEIP III for $5 million in cash, and the assumption of $14 million of net CVS debt.
The purchasers are privately-held manufacturers and service providers for terminal handling equipment provided around the world. As part of the transaction, Manitex retained the operations of CVS’s Valla division, which offers a full range of electric precision pick and carry cranes. The transaction closed Dec. 22.
CVS was originally acquired by Manitex in 2011 for $4 million in cash, and the assumption of $1 million in CVS debt. Trailing 12 months revenue and EBITDA for CVS were approximately $50 million and $2 million, respectively, at the time of sale.
“The divestiture of CVS is another important step forward in our corporate program 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,” said Manitex Chairman and CEO David J. Langevin. “CVS is a solid strategic fit with the Purchasers and this transaction should be of substantial benefit to all parties.”
Manitex expects to record in its fourth quarter and year end 2016 results certain allocated noncash charges for goodwill and intangible assets relating to the disposal of a portion of its CVS segment, which are expected to be approximately $7 to $8 million