Veri-Tek International Corp., Bridgeview, Ill., manufacturer of Manitex boom trucks and Liftking telehandlers, reports that is has signed a definitive agreement to sell its diesel engine testing equipment assets to EuroMaint Industry, Inc. According to Andrew Rooke, president and chief operating officer of Veri-Tek International Corp., once the transaction is completed, the company will be able to focus all its resources on advancing its position in the lifting equipment market.
Veri-Tek will receive $1.1 million in cash as consideration for its assets, which consists of equipment, intellectual property, and inventory. The transaction is expected to close on Aug. 1, 2007, and proceeds will be utilized for debt reduction.
Following the transaction close, Veri-Tek said it will complete the shutdown the Testing and Equipment Assembly segment at the Wixom, Mich., manufacturing facility, which will then consist solely of a single-segment operating business. Management has reserved for all associated closure costs in the first quarter of 2007, and after the closure, it anticipates no further losses associated with the testing and assembly segment. Veri-Tek plans to record a modest gain from the transaction in its upcoming third quarter financial results.
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