Manitou buys Gehl

French material handling and access equipment manufacturer, Manitou, has acquired Gehl for $331 million (€230 M), or $30 (€ 21.2) per share.

Gehl is an US specialist in compact equipment, particularly for the construction and agriculture markets, producing telehandlers and skid steer loaders and other equipment. The company has two strong trademarks, Gehl and Mustang, and 2007 revenues were $458 million (€ 324 million).

Manitou's relationship with Gehl dates from July 2004 when agreements were signed for symmetrical cross-selling of telehandlers in the US and granting Gehl a license to manufacture Manitou telehandlers in the US. Reinforcement of these agreements was sealed with Manitou's 14.9% equity investment in Gehl (14.4% as of June 2008).

The relationship between the companies has strengthened and, in acquiring the outstanding shares, Manitou says that it expects to establish global leadership in the rough terrain material handling equipment sector by building a presence in the US. The acquisition also creates a company of an appropriate size to serve US rental companies.

The broader product offering, with the inclusion of Gehl's skid steer loaders, where the company holds a strong market position; synergy of activities such as R&D, manufacturing and distribution networks and the optimisation of purchasing; add to the strategic benefits.

Marcel-Claude Braud, chief executive officer of Manitou said: “Since our distribution agreement and original 14.9% equity investment in the company in July 2004, we have built a strong working relationship with the management of Gehl of which we appreciate the high competence.

"This transaction is the logical next step in our aim to strengthen our North American operations by joining forces with a player known for its superior products and distribution networks. I am certain that this transaction will accelerate the global development of our group by improving our competitiveness and commercial positioning. It will be beneficial for all of our shareholders as well as management teams on both sides of the Atlantic.”

William D Gehl, chairman and CEO of GehlL said, “The board of directors of Gehl recommends Manitou’s offer at $30 per share. By joining activities and resources with Manitou, Gehl will accelerate its development for the benefit of all of its employees and distributors all over the world. For the next coming years, Gehl will continue to promote its products under its strong trademarks (Gehl, Mustang and Edge) which are, along with its employees, the most valuable assets.”