Question-and-Answer Session
Operator
(Operator Instructions). Our first question is from Joe Giamichael.
Joe Giamichael - Rodman & Renshaw
Good morning. Congratulations on the quarter, impressive margins given the environment.
Tim Tevens
Thank you, Joe.
Joe Giamichael - Rodman & Renshaw
Just a couple of quick questions for you. Karen, do you mind walking us through the Univeyor transaction and just sort of explaining what the end result economic benefit would be to Columbus shareholders? I would imagine there's some confusion regarding the net benefit after you repay the associated debt.
Karen Howard
Sure. Thanks, Joe. It's actually pretty simple in that effective with the closing tomorrow Columbus McKinnon is required to repay Univeyor's external debt, which is $15.2 million. And as a result of the transaction, we have transaction costs, which are about $1.8 million. And then, also, as a result of transaction, we will have a US federal and state tax benefit in the amount of $14 million. So it's a net cash outflow to Columbus McKinnon of about $3 million. But of course, we remove the drag that that operation has had on Columbus McKinnon's results of operations as well as the management resources required.
Joe Giamichael - Rodman & Renshaw
Okay, great. And just a modeling question, what were Univeyor's contribution in Q2 of '08 on a revenue basis?
Karen Howard
Joe, it may be simpler. In conjunction with our 8-K, there will be a schedule attached that will restate the fiscal '08 operations by quarter on a discontinued operations basis.
Joe Giamichael - Rodman & Renshaw
Got it. Okay, great. Thank you.
Karen Howard
You're welcome.
Joe Giamichael - Rodman & Renshaw
And just based on CapEx guidance that you provided, it seems that spending is set to accelerate over the back half of the year. Could you walk us through what some of those projects are?
Karen Howard
I'll let Joe answer.
Joe Owen
Sure. We have a number of projects, one of which is a gear project where we're totally refocusing all of our efforts in gear manufacturing. We have also a number of numerical controlled machines that we have ordered and they have deliveries toward the latter part of the year, which will also help us in our cost reductions. We have, as well, in the latter part of the year, some new products and there is a lot of tooling involved with those products. And so, those will be coming toward the end of the year.
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