Oshkosh to buy JLG

25 April 2008

Oshkosh Truck Corp has reached a surprise agreement to buy powered access equipment manufacturer JLG Industries for US$ 3.2 billion. The deal will see JLG become one of four specialist divisions within US-based Oshkosh and create a combined US$ 6 billion business with 13000 employees.

Oshkosh, based in Oshkosh, Wisconsin, US, contacted JLG in August and the boards of the two companies agreed the deal in mid October. The sale, based on a share price of US$ 28, is expected to be completed by mid January. The JLG acquisition is the latest of 15 made by Oshkosh in the past 10 years, during which time its revenues have grown from under US$ 500 million a year to the current US$ 3.4 billion.

JLG’s president and chief executive officer, Bill Lasky, said JLG had not been for sale. “When I was approached by [Oshkosh], quite candidly, at the beginning I was hoping to find a reason why it wouldn’t be a good fit for JLG...that didn’t last very long when I looked at the success and track record of Oshkosh,” he said. No other potential buyers were contacted and JLG was not offered for “auction” following Oshkosh’s initial approach, said Mr Lasky.

There will also be opportunities for the two companies to share technology, particularly between JLG and Oshkosh’s aerial ladder and fire rescue products. Oshkosh said synergies - particularly in combining purchasing at the two companies - would create annual savings of US$ 75 million within three years.

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