INNOVATE Corp. Completes Sale of Remaining Equity Stake in HMN International

Rhea-AI Summary

INNOVATE Corp. (NYSE: VATE) announced the successful completion of the sale of its 19% interest in HMN International Co. Ltd. to affiliates of Hengtong Optic-Electric Co Ltd. This transaction, initiated through a supplemental agreement in June 2022, will net INNOVATE approximately $32 million after taxes and fees. The funds are earmarked for reinvestment, debt repayment, and general working capital, enhancing the company's balance sheet flexibility. CEO Wayne Barr, Jr. highlighted that the proceeds will support the development of their innovative operating businesses aimed at sustainable growth and value creation.

Positive

• Sale of 19% stake in HMN International generates approximately $32 million in cash.
• Funds will be allocated for reinvestment, debt repayment, and enhancing working capital.
• Transaction improves balance sheet flexibility.

Negative

• None.

NEW YORK, March 07, 2023 (GLOBE NEWSWIRE) -- INNOVATE Corp. (NYSE: VATE), today announced that it has closed the sale of the remaining 19% interest in HMN International Co. Ltd., formerly known as Huawei Marine Networks Co. (“HMN”), to subsidiaries and an affiliate of Hengtong Optic-Electric Co Ltd.

The 19% HMN stake was held by Global Marine Holdings, LLC, an entity in which INNOVATE holds an approximately 73% controlling interest. The sale was consummated pursuant to the terms of a supplemental agreement entered into by the parties in June 2022. After taxes and transaction fees, INNOVATE will receive approximately $32 million in cash, which will be used for reinvestment, debt repayment and general working capital.

Wayne Barr, Jr., Chief Executive Officer of INNOVATE, said, “We are pleased to have completed the monetization of our stake in HMN and the disposition of this portfolio company. The proceeds from this transaction add flexibility to our balance sheet, enabling us to continue developing our innovative operating businesses, which we believe are poised to drive sustainable growth and value creation going forward.”

About INNOVATE Corp.

INNOVATE Corp., is a portfolio of best-in-class assets in three key areas of the new economy – Infrastructure, Life Sciences and Spectrum. Dedicated to stakeholder capitalism, INNOVATE employs approximately 3,902 people across its subsidiaries. For more information, please visit: www.INNOVATECorp.com.

Contacts
Media Contact:
Reevemark
Paul Caminiti/Pam Greene/Luc Herbowy
INNOVATE.Team@reevemark.com
(212) 433-4600

Investor Contact:
Solebury Strategic Communications
Anthony Rozmus
ir@innovatecorp.com
(212) 235-2691

FAQ

What was the recent transaction by INNOVATE Corp. regarding HMN International?

INNOVATE Corp. sold its remaining 19% interest in HMN International Co. Ltd. for approximately $32 million.

How much cash will INNOVATE receive from the sale of its HMN stake?

INNOVATE will receive about $32 million after taxes and transaction fees from the sale.

What will INNOVATE Corp. do with the proceeds from the HMN stake sale?

The proceeds will be used for reinvestment, debt repayment, and general working capital.

What does the sale of HMN stake mean for INNOVATE Corp.'s financial health?

The sale enhances INNOVATE's balance sheet flexibility, providing funds for future growth and operations.