Manitex Agrees to Rent CVS Ferrari Container-Handling Operations

Manitex International, Bridgeview, Ill., announced it has formed an Italian subsidiary, CVS Ferrari SRL, and has entered an agreement to operate the business of CVS Ferrari on an exclusive rental basis.

CVS Ferrari is located near Milan, Italy and designs and manufactures a range of reach stackers and associated lifting equipment for the global container-handling market. These products are sold through a broad dealer network. CVS Ferrari had 2008 annual sales of 71.8 million Euros ($88.2 million USD) prior to the recent economic downturn. The rental agreement has been filed with the Italian court and commences July 1. The court filing also includes an exclusive option to purchase the business at the conclusion of the Italian insolvency process, "Concordato Preventivo". The option and the remaining terms of the arrangement are pending court approval.

Manitex initially plans to rent the operations of CVS in Italy and then acquire the business following approval by the CVS creditors' meeting under the "Concordato Preventivo" process in Italy. The rental period could extend for up to two years, but a shorter period is anticipated. As of the agreement date, CVS has a backlog of orders of approximately $10 million for delivery during 2010.