Shipbuilder Manitowoc Co. (www.manitowoc.com) said it agreed to sell its Marine business to an Italian ship builder for $120 million in cash.
Fincantieri Marine Group Holdings Inc. will buy the smallest of Manitowoc's three business in a deal that is expected to close at the end of 2008, provided regulators approve. Manitowoc Marine Group is a shipbuilding, ship repair and conversion business that has facilities in Cleveland, Ohio and in Sturgeon Bay and Marinette, Wis. It has 1,587 employees.
Manitowoc reported $321 million in revenue from its Marine Group in 2007. Most of the company's revenue comes from sales of cranes and related products, and it also has a food service equipment business.
The sale will give Manitowoc an aftertax gain of approximately 60 cents per share, which will be used for general corporate purposes, including paying down debt from its buyout of British cooking equipment supplier Enodis PLC. Manitowoc agreed to buy Enodis for $2.1 billion in July.
In April, Manitowoc said it expects to report a profit of $3.20 to $3.40 per share in 2008.