ST Engineering divests entire equity interest in US-based construction manufacturer LeeBoy for US$290 million
[SINGAPORE] Singapore Technologies Engineering (ST Engineering) on Tuesday (Jun 24) announced that it will be selling its entire equity interest in ST Engineering LeeBoy, a US-based construction equipment manufacturer, for an estimated US$290 million.
The net proceeds from the sale will amount to around US$246 million, and will be used for debt repayment, resulting in interest expense savings of about US$9 million.
In this deal, the buyer is privately held asphalt-paving equipment manufacturer Fayat Group, which has a presence in the road equipment segment in the US through various businesses such as Dynapac and Asphalt Drum Mixers.
The transaction is expected to close in the fourth quarter of 2025, though it is still subject to regulatory approvals and customary closing conditions.
Based on ST Engineering's FY2024 audited accounts, LeeBoy contributed S$33.8 million in net profit and S$326.3 million in revenue. The disposal is projected to result in a net gain of about S$100 million, after taxes and transaction expenses.
LeeBoy is the last of the company's construction equipment businesses and is part of the group's defence and public security segment.
Shares of ST Engineering closed 1.1 per cent or S$0.09 lower at S$7.83 on Tuesday.
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