(RTTNews) - Valmont Industries, Inc. (VMI) announced Monday that the Company has entered into a definitive agreement to sell its offshore wind business to Euro Steel, a Denmark-based supplier of steel products to the European wind market.
The offshore wind business, known as Valmont SM, was acquired in 2014. It is reported in the Renewable Energy product line in the Company's Infrastructure segment and expected to generate approximately $100 million of revenue in fiscal 2022.
The Company plans to utilize the net cash proceeds from this transaction toward repayment of short-term borrowings.
The transaction will generate a loss per share of approximately $1.20 to $1.45, nearly all due to a non-cash accumulated currency translation loss.
The Company expects the transaction, which is subject to customary closing conditions, to be completed in fourth quarter 2022 and plans to reflect the earnings per share impact as non-GAAP adjustment to its fourth quarter and fiscal year 2022 net earnings.
