BRIDGEVIEW, Ill. - Manitex International, Inc. (NASDAQ: NASDAQ:MNTX), a prominent international provider of truck cranes and specialized industrial equipment, has announced an agreement to be acquired by Japan-based Tadano Ltd. in an all-cash transaction. The equity value of the deal is $123 million, with the total transaction value reaching $223 million when including Manitex's outstanding debt.
Shareholders of Manitex are set to receive $5.80 per share in cash, a 52.2% premium over the closing share price on the last full trading day before the announcement, and a 47.9% premium over the 30-day volume-weighted average price. Post-acquisition, Manitex’s shares will cease to be traded on NASDAQ or any other public market.
David Langevin, Executive Chairman of Manitex, expressed confidence that the agreement with Tadano delivers immediate and substantial cash value to shareholders. CEO Michael Coffey sees the acquisition as a strategic move that will mitigate risks and expand the company's international reach, providing access to new technology and capital.
Endorsed unanimously by Manitex's Board of Directors, the transaction is slated for completion in early 2025, contingent on shareholder approval, regulatory clearances, and other standard closing conditions.
Financial advisory for Manitex is provided by Brown Gibbons Lang & Company, with legal counsel from Bryan Cave Leighton Paisner LLP. Tadano's financial advisor is Perella Weinberg Partners, and its legal counsel is Sullivan & Cromwell LLP.
The proposed merger will be subject to a shareholder vote at a special meeting, with relevant materials to be filed with the U.S. Securities and Exchange Commission, including a definitive proxy statement.
This announcement is based on a press release statement and does not constitute an offer to sell securities. The communication contains forward-looking statements subject to risks and uncertainties, and actual results may differ materially. Investors and shareholders are advised to read the SEC filings thoroughly once available.
In other recent news, Manitex International has made significant strides in its business developments. The company reported a strong Q1 performance, with an 8% increase in organic revenue and a 33% growth in EBITDA compared to the same period last year. The full-year 2024 financial guidance remains unchanged, with revenue expected between $300 million and $310 million, and adjusted EBITDA projected at $30 million to $34 million.
In a strategic move, Manitex announced a dealership agreement with Bruckner's Truck & Equipment, aiming to enhance its distribution network in key North American markets. This partnership will enable Bruckner's to include Manitex's products such as PM articulating cranes in their offerings, expanding Manitex's reach in the Midwest and Southwestern U.S. markets.
In governance news, Manitex shareholders elected six directors to the board and approved executive compensation at the 2024 Annual Meeting of Stockholders. The company also announced the appointment of Takashi Fukui to its board following the resignation of Shinichi Iimura. These developments are part of Manitex's continuous efforts to strengthen its operations and financial performance.
InvestingPro Insights
As Manitex International, Inc. (NASDAQ: MNTX) prepares to transition from a publicly-traded entity to a private subsidiary under Japan's Tadano Ltd., investors are witnessing a significant shift in the company's financial landscape. The acquisition agreement presents a notable premium over the recent trading prices, offering shareholders a lucrative exit opportunity. Let's delve into some key metrics and insights from InvestingPro that shed light on Manitex's current financial health and market performance.
Manitex is currently trading at a low earnings multiple, with an adjusted P/E ratio of 7.36 for the last twelve months as of Q2 2024. This valuation suggests a potential undervaluation of the company's earnings capacity relative to the market. Additionally, Manitex's liquid assets surpass its short-term obligations, indicating a solid liquidity position that can reassure investors of the company's ability to meet its immediate financial commitments.
The company's stock price has experienced volatility in the recent past, with a significant drop over the last six months. However, it's important to note a strong return over the last month, which reflects an 18.69% price total return, signaling a positive market sentiment leading up to the acquisition announcement. This could be a response to analysts' predictions that the company will be profitable this year, a view supported by Manitex's profitability over the last twelve months.
On the balance sheet, Manitex boasts a revenue growth of 5.01% for the last twelve months as of Q2 2024, coupled with a robust EBITDA growth of 48.23%. These figures underscore the company's ability to not only generate income but also manage its earnings before interest, taxes, depreciation, and amortization effectively.
For those interested in exploring more about Manitex's financial performance and market prospects, InvestingPro offers additional insights and tips. Currently, there are seven more InvestingPro Tips available for Manitex, which can be accessed by visiting https://www.investing.com/pro/MNTX. These tips provide a deeper understanding of the company's financial health and future outlook, which could be particularly valuable for shareholders considering their options in light of the upcoming acquisition.
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