France-based equipment manufacturer Manitou has agreed to purchase compact-equipment maker Gehl for $30 per share, with a total value of approximately $450 million.
The deal would allow Manitou to target construction and agricultural equipment markets in the United States, where the company can take advantage of Gehl's distribution channels as well as the distribution channels of Gehl subsidiary Mustang.
“Manitou's interest in Gehl is to increase the presence of Manitou and Gehl worldwide,” says Kirk Zander, Manitou director of sales and marketing. “Both companies would see an increase in market share worldwide.”
Gehl's mini skid loader product line would also play an important role in Manitou's compact equipment offerings.
According to a Gehl press release, Gehl's “management team will be retained following the transaction.” Currently, Manitou owns 14.4 percent of Gehl's outstanding stock.