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Valmont Divests Offshore Wind Business To Denmark-Based Euro Steel

  • Valmont Industries Inc (NYSE: VMI) has agreed to sell its offshore wind business to a Denmark-based supplier of steel products, Euro Steel. No financial details were disclosed this time.

  • 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.

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