Menomonee Falls-based Actuant Corp. has agreed to sell its Viking SeaTech business to UK-based subsea services company Acteon Group Ltd. for $12 million, and acquire Acteon’s Mirage business for $16 million and a potential future performance earn-out.
Actuant acquired Viking in 2013 for about $225 million.
The transactions are expected to close simultaneously, pending regulatory approval, in the fiscal fourth quarter or the first quarter of fiscal 2018, which begins in September. Actuant expects to incur $110 million to $125 million in after-tax charges, including $28 million in cash, related to the transaction.
Mirage, which distributes industrial and energy maintenance tools, has $12 million in revenue and is expected to complement Actuant’s Hydratight hydraulics business. Viking, which provides marine services to the energy industry, reported $20 million in revenue over the trailing 12 months.
Actuant provides hydraulic tools and motion control systems. Its energy segment sales were down 18 percent in its fiscal third quarter, driven by the prolonged oil and gas downturn, which pulled down the company’s revenue down overall despite gains in the industrial and engineered solutions divisions.
“The decision to divest Viking was not taken lightly, but it is consistent with our strategy to concentrate our energy offerings where we can provide the most value over the long term,” said Randy Baker, president and chief executive officer of Actuant. “It also helps to simplify and stabilize our portfolio by significantly limiting exposure to upstream, offshore oil and gas.
“We are pleased to have reached this mutually beneficial agreement with Acteon. On a pro-forma basis, Actuant’s trailing twelve month adjusted earnings per share would have been approximately 15 to 16 cents higher, taking into account Viking’s performance in a very challenging upstream market and the accretion associated with Mirage. We believe these proactive portfolio management actions will improve overall shareholder value.”