Manitex International has sold its LiftKing subsidiary to Lanco, a newly formed subsidiary of Mi-Jack Products for $14 million to focus on its higher margin core lifting business and to cut down debt. The net cash proceeds of about $13.3 million from the sale will be used to pay down the company’s North American bank debt.
Based in Hazel Crest, Ill., Mi-Jack is a privately held manufacturer and service provider for rubber and track mounted gantry cranes and industrial cranes catering to intermodal and industrial markets.
Liftking, best known for its rough-terrain forklifts, came under the Manitex umbrella by acquisition in November 2006 for $7.1 million. The trailing 12-month revenue and EBITDA for Liftking were approximately $18 million and $2 million, respectively. In connection with the divestiture, Manitex will record in its third-quarter results certain allocated non-cash charges for goodwill and intangible assets. This will be in relation to the disposal of a portion of its Lifting segment, and an impairment of its investment in Lift Ventures, a joint venture Company that distributes certain remaining inventory of former Liftking and former Load King products. These charges are expected to be in approximate ranges of $6.5 to $7.0 million and $5.5-$6.0 million, respectively.
The divestiture is in alignment with Manitex’s corporate program that focuses its resources on higher margin core lifting businesses and to reduce its indebtedness. These remain the company’s top corporate priorities for this year and next. Manitex during its second-quarter conference call had stated that sales of non-strategic businesses combined with other incremental working capital and operating cash flow may enable the company to exceed its previously stated target of $45 million in debt reduction for calendar year 2016.
Manitex International is based in Bridgeview, Ill.