The offshore wind business, known as Valmont SM, was acquired in 2014. The company plans to utilize the net cash proceeds from the transaction toward the repayment of short-term borrowings.
The company expects the transaction to enable its Renewable Energy management team to focus exclusively on the solar business.
The transaction will generate a GAAP loss per share of approximately ($1.20) to ($1.45), nearly all due to a non-cash accumulated currency translation loss.
Valmont expects the sale to be completed in the fourth quarter of 2022 and plans to reflect the EPS impact as a non-GAAP adjustment to its fourth quarter and FY22 net earnings.
Price Action: VMI shares are trading higher by 2.13% at $325.80 on the last check Monday.
See more from Benzinga
Don't miss real-time alerts on your stocks - join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.