Valmont announces the conclusion of a definitive agreement to sell its offshore wind activity to Euro Steel.
Finalization of the sale
Valmont purchased this wind business in 2014, which is expected to generate $100 million by 2022. The company plans to use the net cash proceeds from this transaction to repay short-term borrowings. Stephen G. Kaniewski, President and CEO of Valmont, said:
“A key aspect of our strategy is to focus our business in areas where we see the greatest potential for global growth, scalability and value creation. This transaction allows our renewable energy leadership team to focus exclusively on expanding our solar business, which offers tremendous global growth opportunities and better aligns with our strategy to create long-term value for our shareholders. I would like to thank our Valmont SM partners for successfully facilitating efforts to reshape the company toward more profitable growth. We are very pleased that the team is working with a strong partner with a shared vision to invest and grow the business to meet the growing market demand for larger turbines and structures.”
The transaction will generate a GAAP diluted loss per share of approximately $1.20 to $1.45. This loss is the result of accumulated non-cash currency translation. Valmont expects the transaction to close in the fourth quarter of 2022.
Sector refocusing
The EPS impact will be felt in the fourth quarter of 2022. Valmont is a world leader in creating vital infrastructure and improving agricultural productivity. This transaction allows the company to focus on the growth of the solar business.
Euro Steel Denmark supplies steel plates, beams and other products to wind turbine manufacturers. The company operates mainly in the European wind energy markets. In addition, the transaction with Valmont will be subject to customary closing conditions.
