Testing Company Releases Letter of Intent to Acquire Manitex
Veri-Tek International Corp., Wixom, Mich., a manufacturer of testing equipment for engines, axle assembly stations, and driveshaft assembly stations, announced it has entered into a letter of intent to acquire all of the operating assets of Manitex, Inc., Georgetown, Texas.
In fiscal 2005, Manitex posted revenue of approximately $62 million and adjusted EBITDA of approximately $5.0 million. The company currently has a significant backlog, which will be produced by Veri-Tek after the purchase. David Langevin, the current chairman and chief executive officer of Manitex, will assume the role of Veri-Tek's chairman.
Spokespersons for both VCC and Manitex indicated that necessary due diligence would continue, and it is anticipated that a definitive agreement would be concluded in late March subject to necessary stockholder, government, lender and other agency approvals. It is anticipated that the closing will occur in April. The terms and conditions of the anticipated transaction were not disclosed.