Oshkosh Truck, a Wisconsin-based manufacturer of military and heavy-duty commercial vehicles, announced on Oct. 16 that it has signed a definitive agreement to acquire Pennsylvania-based JLG Industries, a leading manufacturer of aerial-work platforms and telehandlers, including the JLG, Gradall, SkyTrak and Lull brands.
The $3.2 billion cash deal has been approved by each company's Board of Directors and is subject to customary closing conditions, which are expected to require 90 days.
According to Oshkosh chairman, president and CEO Robert Bohn, the JLG deal meets the company's major-acquisition strategy, in that JLG is a market leader, has strong management, has double-digit growth potential, and promises earnings in excess of capital costs.
Also, says Bohn, Oshkosh "expects to realize substantial purchasing and logistical synergies, while benefiting from JLG's already outstanding manufacturing operations." JLG operates manufacturing facilities in the United States, France and Belgium.
William Lasky, chairman, president and CEO of JLG, also is optimistic about the deal:
"This transaction is a good fit for JLG," says Lasky. "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."
With revenues of $2.3 billion during fiscal 2006, and with an anticipated 25-percent increase in sales for fiscal 2007, JLG placed 22nd in Fortune Magazine's 2006 list of the 100 Fastest-Growing Companies.