Manitex sells Liftking subsidiary

BRIDGEVIEW - Manitex International has sold its Liftking subsidiary to a newly formed subsidiary of Mi-Jack Products for $14 million.

Mi-Jack, based in Hazel Crest, is a privately-held manufacturer and service provider for rubber and track mounted gantry cranes and industrial cranes in support of the intermodal and industrial markets.

The transaction yielded net cash proceeds of approximately $13.3 million to Manitex International, which the company will use for further pay downs of its North American bank debt.

Liftking was originally acquired by Manitex International in November 2006 for consideration of $7.1 million.

"The divestiture of Liftking is another important step forward in our corporate program to focus our resources on our higher margin core lifting businesses and to reduce the company's indebtedness which remain our top corporate priorities this year and heading into 2017," said David J. Langevin, chairman and CEO of Manitex International. "Liftking is a solid strategic fit with Mi-Jack and this transaction should be of substantial benefit to both parties."

In connection with the closing of the transaction, Manitex International will record in its third quarter results certain allocated noncash charges for goodwill and intangible assets relating 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. The charges are expected to be in approximate ranges of $6.5-$7.0 million and $5.5-$6.0 million, respectively.