Manitowoc Disposition of its Marine Division
Many people recognize that The Manitowoc Company is a worldwide leader in manufacturing construction cranes, and some may know that they also serve the foodservice industry. But, fewer recall that the company began its existence, more than a century ago, as a shipbuilder. In 2008, the publicly traded company decided to divest itself of its shipbuilding operations and sell that sector of its business to the Italian Fincantieri Marine Group, and they did so with our assistance. The deal included not only the usual aspects of business deals—establishing the sale price, making clear representations of the assets and liabilities, defining the warranties, etc.—but included addressing the interests of the U.S. government. Our client's Marine Division had a longstanding relationship building military vessels for the U.S. Navy and Coast Guard. As a result, there was an added layer of complexity in obtaining governmental approvals for the deal, including from the Committee on Foreign Investment in the United States (CFIUS), which is part of the U.S. Treasury Department. Manitowoc’s diversified business model added complexity to the sale, making it extremely important for us to understand exactly how our client’s Marine Division was intertwined with the rest of the company’s operations and how to extricate it from the rest of the business without creating problems for the ongoing concern. The deal entailed months of careful negotiations, but we still closed it in a timely fashion, for $120 million.