Benzinga | Mar 31, 2021 04:28PM EDT

Standex International Announces Divestiture Of Enginetics Corporation For ~$11.5M In Cash

Standex International Corporation ("Standex") (NYSE:SXI) today announced that it has divested Enginetics Corporation, its jet engine components business, to Enjet Aero, LLC, a privately-held aerospace engine component manufacturing company, for approximately $11.5 million in cash. Enginetics generated approximately $9 million in revenue in the first nine months of fiscal 2021.

Standex expects to incur non-cash charges associated with the divestiture including goodwill charges in the fiscal third quarter of 2021. Standex expects that the pre-tax charge including transaction costs will range from $14.5 million to $15.5 million with approximately $13 million attributable to goodwill and other intangible assets.

"Today's sale of Enginetics enables our Engineering Technologies Group to focus on the higher growth and margin opportunities of its core spin forming solutions business that serves the space, commercial aviation and defense end markets. In addition, our significant financial flexibility and strong balance sheet continue to position us very well to pursue an active pipeline of organic and inorganic opportunities and further drive profitable growth. The transaction will also be immediately accretive to our operating margin," commented President and Chief Executive Officer David Dunbar.

"We believe Enjet's stewardship and complementary business will be beneficial to both customers and employees of Enginetics. I want to thank the employees of Enginetics for their dedication and contributions to Standex," concluded Dunbar.

Seale & Associates acted as exclusive financial advisor to Standex on the transaction.