Valmont Divests Offshore Wind Business To Denmark-Based Euro Steel

Valmont Industries Inc 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.