Actuant Corporation has signed a definitive agreement to sell its Viking SeaTech business to Acteon Group, a global subsea services business, for approximately $12 million.

Actuant has also signed a definitive agreement to purchase Mirage, a $12 million revenue provider of industrial and energy maintenance tools, from Acteon for approximately $16 million, plus potential future performance based consideration.

The two transactions will close simultaneously, and are subject to customary regulatory approvals and closing conditions, the company said.

Randy Baker, actuant president and chief executive officer, said, “The decision to divest Viking was not taken lightly, but it is consistent with our strategy to concentrate our energy offerings where we can provide the most value over the long term. It also helps to simplify an d stabilize our portfolio by significantly limiting exposure to upstream, offshore oil & gas.”

The Viking business generated approximately $20 million in revenue during the past twelve months. In conjunction with the sale, Actuant expects to record after tax charges in the range of $110-125 million, including a cash charge of approximately $28 million from unwinding certain rental fleet operating leases, including those resulting from the mid-2014 sale and leaseback transaction.

The remaining charges largely consist of non-cash items including the write down of Viking assets to their net realizable value and the recognition in earnings of the cumulative effect of foreign currency rate changes since acquisition. These charges will be incurred during the fourth quarter of fiscal 2017 and early in fiscal 2018, upon closing.

“The Mirage business, headquartered in the UK, is a strong complement to Hydratight. It broadens its product line offerings, most notably in the flange facing and hot tapping categories, while providing additional rental and service opportunities,” Baker continued.

“We are pleased to have reached this mutually beneficial agreement with Acteon. On a pro-forma basis, Actuant’s trailing twelve month adjusted earnings per share would have been approximately $0.15-0.16 higher, taking into account Viking’s performance in a very challenging upstream market and the accretion associated with Mirage. We believe these proactive portfolio management actions will improve overall shareholder value.”