Manitowoc Co. to sell ship-building business

Milwaukee Journal Sentinel

The Manitowoc Co. (MTW) said today it has agreed to sell its ship-building business for $120 million to Italian shipbuilder Fincantieri Marine Group Holdings Inc., a subsidiary of Fincantieri–Cantieri Navali Italiani SpA.

Lockheed Martin Corp. (LMT) has agreed to be a minority investor with Fincantieri in the proposed acquisition.

The transaction is an all-cash deal that is anticipated to close at the end of 2008. The sale is subject to U.S. antitrust and certain U.S. security agencies. Assuming the sale is completed by year-end, the transaction is expected to generate a gain of about 60 cents a share.

Manitowoc Marine Group is a full-service shipbuilding, ship repair, and ship conversion organization that operates in Sturgeon Bay, Marinette and Cleveland. Serving a broad base of commercial, military, and government customers that operate vessels both on and off the Great Lakes, Manitowoc Marine employs 1,587 workers at its Bay Shipbuilding, Marinette Marine, and Cleveland Shiprepair operations.

“This transaction will allow Manitowoc to focus its financial assets and managerial resources on the growth of its increasingly global crane and foodservice businesses,” Glen E. Tellock, Manitowoc’s president and chief executive officer, said in a statement.

Manitowoc intends to use the after-tax proceeds for general corporate purposes, which include paydown of debt anticipated as a result of the pending acquisition of foodservice company Enodis.

Manitowoc is close to acquiring Enodis, a British cooking equipment supplier, for $2.7 billion. Enodis would more than triple Manitowoc’s annual food-equipment sales to more than $2 billion, and would make it one of the largest companies of its kind.