Actuant to sell European Electrical business; NYSE accepts Magnetek’s continued listing plan
Actuant to sell European Electrical business
Actuant Corp. plans to divest its European Electrical business, which markets its products primarily under the Kopp brand name.
The European Electrical business has previously been reported as part of Actuant’s Electrical segment.
"This planned transaction reflects our proactive portfolio management efforts to focus on platforms where we can create the most shareholder value," said Robert Arzbaecher, chairman and chief executive officer of Butler-based Actuant.
European Electrical (consisting of Kopp and Dresco) designs, manufactures and markets electrical sockets, switches and other tools and consumables predominately for the European do-it-yourself (DIY) retail market. It has operations in Germany, Austria and Tunisia, and employs approximately 525 people. It has annual revenues of approximately $105 million.
"The Kopp business has a strong brand and market position, a committed workforce, and prospects for future profitable growth,” Arzbaecher said. “However, we believe that future growth can be more fully realized with an owner focused on the European DIY market. I want to thank the employees for their many contributions under Actuant ownership. During the divestiture process, the European Electrical business will continue to focus on meeting and exceeding customer requirements for high quality electrical products.”
As a result of its divestiture plans, Actuant has conducted an impairment analysis of European Electrical and expects to report a non-cash asset impairment charge in the range of $35 million to $40 million in its fourth quarter operating results. Additionally, European Electrical’s operating results have been removed from continuing operations in Actuant’s condensed consolidated statement of operations.
Actuant will report its fourth quarter and full year 2010 results on Sept. 29.
NYSE accepts Magnetek’s continued listing plan
Menomonee Falls-based Magnetek Inc. announced that the New York Stock Exchange has accepted the company’s proposed plan for continued listing. As a result of the NYSE’s acceptance of Magnetek’s plan, the company’s stock will continue to be listed on the NYSE, pending quarterly reviews to assess progress against the plan. The company has until June 2011 to regain compliance with the NYSE’s continued listing standards.
Magnetek previously received a notice from the NYSE that it was considered "below criteria" because the company’s total average market capitalization over a consecutive 30-day trading period and its most recently reported stockholders’ equity each amounted to less than $50 million.
Magnetek manufactures digital power and motion control systems used in material handling, people moving and energy delivery.
