Terex will enter into a joint venture in compact track and skid steer loaders as it sells 51 percent of ASV to Manitex. The deal is expected to close by year-end.
ASV will continue to sell its compact track loaders and skid steers under the Terex brand. “The formation of this joint venture is a positive for both Terex and ASV,” said Terex chairman/CEO Ron DeFeo. “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.” Included in the transaction is ASV’s Grand Rapids, Minn., manufacturing facility and certain assets held at Terex’s Southaven, Miss., distribution center.
In a separate transaction, Terex will use a portion of the cash it receives as a result of the ASV sale to acquire $12.5 million of newly issued Manitex common shares and $7.5 million of convertible debt securities.
“We have sold businesses to Manitex and profitably owned their equity in the past,” DeFeo said. “They are a good aggregator and operator of machinery businesses, and we look forward to extending our value creating relationship.”