Columbus McKinnon Corporation (CMCO) has signed a definitive agreement to sell its Univeyor business to a newly-formed company established by the owner of a Danish material handling company, in a transaction expected to close on July 25 2008.
Prior to the transfer, the company will repay Univeyor’s debt obligations of approximately $15.2million.
The company confirmed its intent to divest Arden, Denmark-based Univeyor in January 2008, “as the subsidiary’s sales channels, business model and margins were not in line with the company’s long-term strategy and performance goals,” said CMCO.
In fiscal year 2008, Univeyor’s results negatively impacted company earnings by $10.1m, or $0.53 per diluted share.
In its first quarter of fiscal 2009 financial results, reported separately, CMCO disclosed that it accounted for Univeyor as a discontinued operation.
