Manitex International sells Load King subsidiary for $6.52 million

Marketwired

Manitex International said it has sold its Load King subsidiary to Utility One Source for approximately $6.52 million in cash.

Kansas City-based Utility One Source is a privately-held single source supplier of specialty equipment and services for the utility and heavy equipment industries.

Net proceeds of approximately $6.2 million from the sale will be used to repay bank debt, Manitex officials said in a statement, and will result in an estimated after-tax book loss of approximately $1 million for Manitex that will be reflected in the company's financial results for the fourth quarter.

"The divestiture of Load King is one of several actions we are taking to reduce the company's indebtedness and focus on our higher margin core lifting businesses, which remain our top corporate priorities heading into 2016," said Manitex Chairman and CEO David J. Langevin. "Load King is a solid strategic fit with Utility One Source and this transaction should be of substantial benefit to both parties. We are deeply appreciative of the efforts of the entire Load King team and are confident that Utility One Source will be an excellent owner and operator of this business."