MILWAUKEE — Actuant Corporation announced that it has taken a significant step in its previously announced plan to focus on its Enerpac Industrial Tools & Services (”IT&S”) business and implement its strategy to be a global leader in industrial tools and services.
The Company entered into a Securities Purchase Agreement (SPA) with an affiliate of One Rock Capital Partners, LLC (“One Rock”), under which One Rock will acquire the Engineered Components & Systems (“EC&S”) segment. The businesses included in this segment and sale agreement are Power-Packer, Elliott Manufacturing, Weasler Engineering, CrossControl, Maximatecc, and Gits Manufacturing.
One Rock is a private equity firm located in New York and Los Angeles that makes controlling investments in companies with potential for growth and operational improvement. Managing approximately $1.4 billion in capital, One Rock focuses on investments in industries including specialty manufacturing, healthcare products, chemicals and process industries, food manufacturing and distribution, and business and environmental services.
Randy Baker, President and Chief Executive Officer of Actuant, said, “The agreement to sell the EC&S business represents an important milestone toward our objective of becoming a premier pure play industrial tools and services company. This agreement has been approved by our Board of Directors and is the result of a comprehensive sale process that our management team and external advisors ran over the last several months to enhance long-term value for our shareholders. This is an exciting outcome for our EC&S employees and we thank them for their continued support during the sale process.”
Baker continued, “We are excited about the future of the Enerpac business. Enerpac and its leading brands are global leaders in high-force hydraulic tools and equipment for diverse industrial and infrastructure applications. With the ongoing integration of the Hydratight business, Enerpac is able to offer a full line of products and services focused on joint-integrity solutions and custom machining services through its expansive global network, adding even more value to our customers. Our recent financial results, including for this past quarter, reflect Enerpac’s positive fundamentals and strong end-markets. We are confident that we are well-positioned for future growth and shareholder value creation.”
Consistent with the Company’s capital allocation priorities, proceeds from the sale will be used 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. The order of these priorities may vary based on share price, market conditions, the existence of attractive acquisition opportunities, available capital, and other factors. Acquisitions will be pursued in a disciplined manner and in all cases evaluated against the value creation from deploying similar capital to our shareholders through share repurchases.
Completion of the transaction is subject to customary regulatory and other approvals and is expected to close in the fourth quarter of calendar 2019. Employee representative consultations are to be conducted in certain jurisdictions prior to the final sale.
Further details can be found here.
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