Terex sells 51% of ASV to Manitex
By Helen Wright30 October 2014
Manufacturer Terex has sold 51% of its compact tracked loaders and skid steer producer ASV to Manitex for US$125 million (€99 million).
Terex said the deal, which is expected to close before the end of the year, would see it form a joint venture with Manitex. It said ASV would continue to sell its compact tracked loaders and skid steers under the Terex brand.
ASV’s Grand Rapids, Minnesota, US, manufacturing facility was included in the transaction, as well as certain assets held at Terex’s Southaven, MS distribution centre.
In a separate transaction, Terex said it would use a portion of the cash it received as a result of the ASV sale to acquire US$12.5 million (€10 million) of newly-issued Manitex common shares and US$7.5 million (€6 million) of convertible debt securities.
Terex chairman and CEO Ron DeFeo said the deal was positive for both Terex and ASV. “Terex preserves its broad compact equipment product offering and its participation in an expected housing recovery. Manitex will augment ASV’s existing distribution channels, allowing for faster growth of the ASV business,” he said.
“We have sold businesses to Manitex and profitably owned their equity in the past. They are a good aggregator and operator of machinery businesses, and we look forward to extending our value creating relationship,” Mr DeFeo added.