Manitex International Inc., has reached an agreement to acquire PM Group S.p.A. (PM), San Cesario sul Panaro, of Modena, Italy. Manitex is an international provider of cranes and material- and container-handling equipment based in Bridgeview, Ill.
The agreement is subject to pending Italian court approval of a debt restructuring plan. Manitex expects the transaction to close during the fourth quarter of this year, upon Italian court approval. Management expects this to be immediately accretive to Manitex International's net earnings in 2014.
Consideration of $107 million in aggregate is to be paid as follows:
- $24 million in cash provided by a new Manitex term loan with current Manitex bankers;
- $15 million in new equity issuance (approximately 1 million Manitex shares) distributed primarily to current PM banks; and
- $68 million in assumed debt and liabilities, which includes working capital facilities for PM.
Trailing 12-month revenue for PM through June 2014 was approximately $106 million, with EBITDA margins consistent with those of Manitex, about 9 percent of sales.
PM-Group S.p.A., is an Italian manufacturer of truck-mounted hydraulic knuckleboom cranes with a 50-year history and a product range spanning more than 50 models. Its largest subsidiary, Oil & Steel (O&S) manufactures truck- and track-mounted aerial platforms. Combined, O&S and PM add nearly 510,000 square feet of assembly and manufacturing space, spread between two locations in San Cesario S/P, Modena, and in Arad, Romania. They sell to a worldwide dealer network.
"With the restructuring of its debt, which includes a reduction of more than $65 million, and evidence of the beginnings of a European recovery, we believe that this is a very attractive acquisition for us from a financial standpoint," said David Langevin, chairman and CEO of Manitex. "This acquisition also expands our product portfolio nicely, enabling us to offer our dealers both straight-mast and knuckleboom cranes, each with unique benefits, functionality, and niche market applications.”