Manitex Follows Up a Profitable Quarter With Acquisition

On the heels of the announcement of positive third-quarter financial results, Manitex International announced that it will purchase Valla Cranes. The company said that subsequent to the quarter's end, it had reached an agreement in principle to acquire Valla SpA of Piacenza, Italy. Valla, a maker of mobile industrial cranes, posted $7.5 million in revenues in 2012. The purchase price was not revealed.

Founded in 1945, Valla manufactures a full range of mobile cranes with capacities from 2 to 90 tons. Valla cranes include electric, diesel, hybrid, wheeled and tracked as well as fixed and swing booms.

Manitex International posted net revenues of $57.5 million, an 8 percent rise as compared to $53.4 million in the prior year's quarter. Revenue declined 8 percent compared to the record second quarter 2013 revenues of $62.6 million.

The company reported that it completed the acquisition of Sabre Manufacturing on August 19 for total consideration of $14 million. It also completed new multi-lender North American $64 million revolving credit facilities, including Comerica Bank, Fifth Third Bank and HSBC.

Also in the third quarter, Manitex International completed a registered direct equity offering for 1.4 million shares with net proceeds of $14 million, which was used to repay debt.

Of the financial results, Chairman and CEO David Langevin, said "Despite a very slow overall economic environment, we posted another solid quarter of growth, putting us on pace to reach a record level of sales and profits for the full year 2013. We intend to continue to grow through the introduction of innovative niche products, such as our new 15-, 30-and 70-ton crane models along with acquisitions such as Sabre, which closed during the quarter, which fit our specialized product strategy."

Regarding the Valla purchase, Andrew Rook, president and COO, said the Valla crane line fits in well with its niche product offerings.


Source: ACT Magazine, December 2013 Issue

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