Actuant moves forward with divestitures; Consumer driven health plan firms merge
Actuant moves forward with divestitures
Butler-based Actuant Corp. announced Monday it has completed the sale of its Acme Aerospace business to TransDigm Group, Inc. of Cleveland, Ohio.
Actuant’s Acme Aerospace business, reported within the Engineered Solutions segment, designs and manufactures lightweight, high power battery chargers, power supplies and backup power systems including fiber nickel cadmium (FNC) batteries for use in commercial and military aerospace applications. The business has annual revenues of approximately $18 million.
Robert Arzbaecher, Actuant chief executive officer, said, "We are pleased to have completed the divestiture of this business to a strategic buyer whose complementary product offerings provide a clear fit for Acme Aerospace."
In addition, Actuant announced it has reached an agreement to sell its BH Electronics business back to the group of private investors who had founded the company. BH Electronics provides custom dash panels and electrical wiring harnesses to recreational boat original equipment manufacturers (OEMs). Actuant expects to complete the transaction by the end of the fiscal year. BH Electronics is included within the Harsh Environment Electrical product line in Actuant’s Electrical Segment and has annual revenues of approximately $15 million.
Arzbaecher said, "These transactions are part of our portfolio management efforts to proactively focus on platforms where we can build meaningful positions and support our strategic growth initiatives."
Actuant expects cash proceeds from the transactions to be approximately $40 million, and funds be used to reduce the company’s outstanding indebtedness. Actuant expects to record an aggregate net gain on the divestitures of approximately $15 million.
Consumer driven health plan firms merge
Oak Creek-based FlexMor Corp. and Lafayette, Ind.-based Benefits Management Consulting recently announced a merger. Together they have officially formed GetMOR Enterprises.
Terms of the transaction were not disclosed. The companies were advised on the formation of GetMOR Enterprises by Promontory Point Capital, a Milwaukee-based investment banking firm.
GetMOR will be based in Lafayette, Ind. because most of the administrative staff is already there said Chris Riegg, partner of Promontory Point Capital. Employment in Oak Creek, where fewer than 10 employees are located, will not be affected by the merger, he said.
The two companies have been doing business together since 2004 providing design,
implementation, and administration of a consumer driven health plan known as "The GetMOR Plan." The plan was created by the two companies, along with tax strategists.
Through plan redesign, employers reallocate premium savings to fund pre-tax dollars to a debit card administered by GetMOR Enterprises. Employees utilize their debit card to fund health care expenses such as their share of the deductible along with any approved out-of-pocket expenses allowed under the IRS Revenue Code. Through adoption of The GetMOR Plan, employees are able to rollover unused dollars year-to-year and then utilize these funds for health care expenses in future years.