Manitex International has completed the acquisition of Italy-based PM Group for US$91 million.
PM manufactures knuckle boom cranes and aerial work platforms under the Oil & Steel brand.
The price reflects exchange rate changes from the previously announced $107 million purchase agreement, and consists of $21 million in cash, assumed debt of $60 million, and one million shares in Manitex.
David Langevin, chairman and CEO of Manitex International said, “We welcome PM Group to the Manitex family, and look forward to providing our dealers another exceptional product line to offer to their customers.
“Knuckle booms cranes have been gradually gaining traction in the North American markets in the past few years and we believe that this is a very exciting opportunity for Manitex and our shareholders. We have already begun the planning process for additional knuckle boom production here in North America, and expect to introduce this exciting new product line throughout our North American dealerships this year."
Mr Langevin continued, “Additionally, we expect to accelerate the distribution of the Manitex product through the broad international PM sales network. By our introduction of this product line into the US we expect, over time, to increase the overall PM knuckle boom business above its historical levels.”
The addition of PM, together with ASV, Manitex’s new joint venture with Terex Corporation, means Manitex starts 2015 at an annual sales rate of approximately $500 million.
Financing for the cash portion of the purchase price was provided by Manitex's recently announced new bank credit facilities and the issuance of new convertible subordinated notes to institutional investors.
PM, based in Modena, Italy, had a 2014 revenue of $100 million with EBITDA margins consistent with those of Manitex International, said the company.