Innovate completes sale of DBM Global to IES Holdings
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- INNOVATE Corp. (NYSE:VATE) completed the sale of its approximately 91.21% stake in DBM Global to IES Holdings (NASDAQ:IESC).
- The sellers received approximately $378 million in cash and 430,974 IES shares valued at about $146 million, plus an extra $35 million cash payment for a joint tax election.
- INNOVATE stated its intention to use all net transaction proceeds to pay down and reduce its outstanding corporate debt.
INNOVATE (NYSE:VATE) finalized the divestiture of its majority interest in DBM Global to IES Holdings (NASDAQ:IESC).
Under the transaction terms, IES acquired all outstanding common shares of DBM Global, bringing its total ownership to 100%.
Total cash proceeds received at closing hit approximately $413 million, bolstered by a $35 million compensation payment for obligations connected to a Section 338 joint tax election.
The stock consideration of 430,974 shares is subject to a maximum 60-day lock-up period following the completion date.
Management confirmed that the final purchase price remains subject to standard post-closing adjustments and finalization.
