S&P: Actuant unaffected

Standard & Poor's said that the announcement by Actuant Corp. (BB/stable/--) of a definitive agreement to acquire Hydratight Sweeney from unrated Dover Diversified Inc. for about $93 million in cash does not affect its ratings or outlook on Actuant.

Hydratight Sweeney, with headquarters in Birmingham, U.K., manufactures and delivers bolting products and services to the oil and gas, power generation, industrial, and other end-user markets. Following consummation of the acquisition, Hydratight Sweeney will report to the Enerpac business and be included in Actuant's Tools & Supplies segment.

Commenting on the acquisition, S&P indicated that Actuant's balance sheet should be able to absorb the cost in a reasonable time and that the financial profile will be stretched. S&P also indicated that Actuant's financial flexibility for additional debt-financed transactions in the near term would be substantially reduced.

The company's good cash-flow-generating capability and a commitment to maintaining a solid balance sheet should enable Actuant to preserve credit quality, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.