Introduction
On July 9th, Actuant (ATU) announced the sale of the Engineered Components & Systems ("EC&S") segment. This business consists of their lower quality assets (more cyclical, more capital intensive, lower margin, etc.). A company electing to divest over 40% of its revenue doesn't happen often, so investors should take note and learn about the company when such an announcement is made. As a result of this portfolio move, Actuant has characteristics similar to many other special situation investment opportunities
History of Poor Acquisitions
Actuant has a track record of poorly allocating capital ever since