The Verticon Group, Melbourne, Australia, recently announced that it had sold its New Zealand-based tower crane and hoist division for U.S. $11.6 million to Lewis Equipment Company, Dallas, Texas.
Included in the sale were all New Zealand-based tower cranes, hoists, ancillary equipment and hire agreements. The proceeds of the sale will be used to retire underlying debt. Andrew Torrington, managing director of Verticon, said the sale was a strategic divestment that would enable the company to substantially reduce its borrowings and ongoing interest cost exposure.
Verticon will continue to operate its fleet of 14 crawler cranes and 7 mobile cranes in New Zealand.
“This sale is part of the strategy in reviewing all parts of the business and will enable Verticon to refocus its energies on improving the financial position and cashflow and lead to long-term growth of the Australian-based business,” Torrington said.
Kyle Lewis, chairman and CEO of Lewis Equipment Company, said that the purchase of the business was good for both parties, and he looks forward to working with Verticon in New Zealand.