04.10.2016

Manitex offloads Liftking

Manitex International has sold its Liftking Rough Terrain fork truck subsidiary to Mi-Jack Products for $14 million.

Illinois based Mi-Jack produces rubber tyres and rail mounted gantry and industrial cranes. The transaction, will generate net cash proceeds of $13.3 million for Manitex, which the Company will use to pay down its North American bank debt.

Liftking revenues over the past 12 months were $18 million with Earnings Before Interest, Tax, Depreciation and Amortisation of $2 million. Manitex acquired the business in November 2006 for $7.1 million. Last December the company sold its Load King trailer division to Utility One Source, for $6.5 million in cash.

Manitex will take a third quarter write down of some goodwill and intangible assets relating to the disposal of Lifting, along with an impairment of its investment in Lift Ventures, a joint venture that distributes remaining inventory of Liftking and Load King trailer products. These charges are expected to be between $6.5 and $7 million and $5.5 to $6 million, respectively.
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A Lift King Rough Terrain fork truck

Manitex chief executive David Langevin said: "The divestiture of Liftking 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 this year and heading into 2017. Liftking is a solid strategic fit with Mi-Jack and this transaction should be of substantial benefit to both parties. We are deeply appreciative of the efforts of the entire Liftking team and are confident that Mi-Jack will be an excellent owner and operator of this business."