WASHINGTON (dpa-AFX) - Actuant Corp. (ATU) said that it intends to solely focus on its Industrial Tools & Services or 'IT&S' segment and pursue a standalone strategy as a pure play industrial tools and services company. The company has initiated a process to maximize the value of its remaining Engineered Components & Systems or 'EC&S' segment through a potential divestiture of the segment.
Actuant said it reiterated its existing capital allocation strategy to strengthen and invest in the IT&S business, maintain a strong balance sheet, pursue complementary strategic acquisitions in a disciplined manner, and return excess capital to shareholders through opportunistic share repurchases.
As a result of the Company's announcement of its intent to divest EC&S, the Company is currently performing impairment analyses of the EC&S long-lived assets which could result in the Company recording non-cash impairment charges in future periods, reflecting a write down of the EC&S net assets to their net realizable value.
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