08.07.2003

JLG in $100 million OmniQuip acquisition

JLG has signed an agreement with Textron in the US, under which it will acquire the OmniQuip business of the latter mentioned company. The deal will include the purchase of the assets of Trak International, by JLG, comprising all operations relating to the Sky Trak and Lull brand telehandler products for a cash purchase of price of $100 million (€88.16 million). Including integration expenses, JLG said that the acquisition is expected to boost company earnings per share by $.08 (€.07) to $.10 (€.08) in the first full year of combined operations and will continue to increase in subsequent years. Sales of the purchased operations in calendar year 2002 totalled approximately $217 million (€191.3 million).

Commenting on the agreement, Bill Lasky, chairman of the board and president and chief executive at JLG said: “This acquisition is consistent with our strategic direction of remaining focused on our core access products. In addition to expected savings from common components, product designs and distribution channels, we have identified and will realise significant ‘hard’ synergies, allowing JLG to apply its competencies in manufacturing, engineering, new product development and supply chain management. When combined with JLG’s industry-leading after sales and support services, these synergies will offer our customers significantly increased value. The addition of models specifically designed for the military and government applications also provides new channels to market for JLG.”

* OmniQuip Textron manufactures and markets multi-brand telescopic material handlers and is North America's leading producer of telescopic material handlers. Telehandlers are marketed under the Sky Trak and Lull brand names. The company's products are used in numerous applications by commercial and residential building contractors, as well as by customers in other construction, military and agricultural markets. OmniQuip is also a key supplier of telescopic material handlers to the US Army.