Oshkosh Truck Corp. (Oshkosh, Wis.) announced that it has signed a definitive agreement to acquire JLG Industries, Inc. (Mcconnellsburg, Penn.), manufacturer of aerial work platforms and telehandler vehicles. Oshkosh will acquire all outstanding shares of JLG for $28 per share. Total consideration, including transaction costs and assumed debt, is $3.2 billion in cash on a fully diluted basis. This transaction will create a $6 billion global specialty vehicle manufacturer.
“We have consistently executed strategies to grow this company, creating significant shareholder value during the last decade,” said Robert G. Bohn, Oshkosh’s chairman, president and chief executive officer. “The acquisition of JLG is the latest broad-based initiative in the continuing transformation of Oshkosh Truck Corporation. It is aligned with our historic acquisition strategy as we expand into complementary markets and it will be instrumental in building our global focus and scale that are increasingly needed to continue to be successful. It also meets our major acquisition criteria, which include market leadership, strong management, double digit growth opportunities and the expectation of earnings in excess of our cost of capital.”
JLG had $2.3 billion in revenues during fiscal 2006 and has estimated a 20% to 25% increase in sales in fiscal 2007. It has the top market position in North America and Europe for aerial work platforms and is the top producer of telehandlers in the United States. JLG placed 22nd on FORTUNE magazine's 2006 list of the 100 Fastest-Growing Companies. The ranking was based on three-year profit and sales growth through the first quarter of 2006 and three-year total return to shareholders.
“This transaction is a good fit for JLG,” said William M. Lasky, chairman, president and chief executive officer of JLG. “Oshkosh has a similar philosophy of offering premier products, creating strong market positions and delivering after-sales service and support. For the JLG team, this combination offers additional growth opportunities. For our customers, JLG will become an even stronger partner in their future success. We look forward to working with the Oshkosh management team to ensure a rapid and seamless transition.”
Source: Oskkosh Truck