Vontier Announces Divestiture of the Coats Company

Introduction

In a strategic move to focus on delivering more intelligent solutions to its customers, Vontier Corporation (NYSE: VNT) has announced the sale of its Coats business to Victor Capital Partners. The all-cash transaction, valued at $72.5 million, marks Vontier's commitment to streamlining its portfolio and driving superior value for its shareholders. This article will explore the details of the divestiture and highlight the key players involved.

The Sale

Vontier Corporation, a leading global provider of critical technologies and solutions, has finalized the sale of its Coats business to Victor Capital Partners, a reputable middle-market private equity firm. The $72.5 million deal signifies Vontier's dedication to transforming its portfolio and aligning its focus on delivering intelligent and differentiated solutions. The sale is an all-cash transaction, offering immediate financial benefits to Vontier Corporation.

Strategic Priorities

Mark Morelli, President and Chief Executive Officer of Vontier, expressed his satisfaction with the progress made in transforming the company's portfolio. Morelli reiterated the company's commitment to its strategic priorities, stating that the net proceeds from the transaction would be utilized for future debt reduction and share repurchases. The move highlights Vontier's dedication to creating value for its shareholders while reinforcing its strategic focus on the Connected Mobility strategy.

About Coats

Coats, the divested business unit, is a global manufacturer of wheel service, alignment, lift, and inspection equipment for the automotive market. With over 70 years of industry expertise and innovative engineering, Coats offers a wide range of products under its iconic brand. The company serves repair shops, tire dealers, big box retailers, and car dealerships, providing them with essential equipment needed to keep up with the rapidly evolving automotive industry.

Victor Capital Partners

Victor Capital Partners, the buyer of the Coats business, is a reputable private equity firm specializing in investments in specialty consumer, industrial technology, and business services companies. The firm focuses on resilient industries and mission-driven branded businesses with significant growth potential. The acquisition of Coats aligns with Victor Capital Partners' investment strategy, as they recognize the growth potential of the automotive equipment market.

Financial Outlook

Coats is projected to report 2023 revenue of approximately $110 million and an EBITDA of approximately $10 million. As of the completion date, the financial results of the Coats business will be excluded from Vontier's continuing operations and reported within the "Other" segment of Vontier's financials. The transaction closed on January 8, 2024, marking the successful completion of the divestiture.

About Vontier

Vontier Corporation is a global industrial technology company that focuses on productivity, automation, and multi-energy technologies. The company is dedicated to meeting the needs of a rapidly evolving and more connected mobility ecosystem. Leveraging its leading market positions, decades of domain expertise, and an extensive portfolio, Vontier delivers smart, safe, and sustainable solutions to its customers and the planet. The company fosters a culture of continuous improvement and innovation, driving its commitment to meeting and exceeding customer expectations.

Conclusion

Vontier Corporation's divestiture of the Coats business is a strategic move that aligns with the company's focus on delivering intelligent and differentiated solutions to its customers. The sale to Victor Capital Partners for $72.5 million signifies Vontier's commitment to streamlining its portfolio and driving superior value for its shareholders. With Coats projected to report strong revenue and EBITDA figures for 2023, the divestiture marks a successful step forward for both Vontier and Coats. As Vontier continues to innovate and adapt to the changing mobility ecosystem, shareholders can expect the company to remain at the forefront of critical technologies and solutions in the global market.