Terex to buy ASV
By Murray Pollok10 April 2008
Terex has announced it will buy compact tracked loader manufacturer ASV for US$488 million (€342 million).
US-based ASV is a major supplier to Caterpillar – and is 23% owned by Cat – although Caterpillar is reported to support the deal. As well as manufacturing loaders up to 1724 kg operating capacity under its own ‘Posi-Track' brand, ASV supplies tracked undercarriages to both Caterpillar and Vermeer for similar products. “ASV is a leader in compact track loader technology and with the global reach of Terex, we see tremendous opportunity for expanding ASV product sales”, said Terex chairman & CEO Ron DeFeo. ASV reported sales of $246 million (€172 million) in 2006.
According to ASV's 2006 annual report, 33% of its sales that year were to Caterpillar. Under a five-year supply agreement signed in 2005, Cat has agreed to buy all of the undercarriages and spare parts for its multi-terrain loaders from ASV until November 2010.