Manitex and Terex forms joint venture

Manitex International, Inc., a leading international provider of cranes and specialized material and container handling equipment, announced on Dec. 22, that it has successfully completed the formation of its Joint Venture with Terex Corporation (NYSE:TEX), and has become the majority owner of ASV, effective Dec. 19, 2014. As a result of the transaction, Manitex now owns 51 percent of ASV and Terex owns 49 percent of ASV. ASV’s financial results will be included in Manitex International Inc.’s consolidated results beginning in the fourth quarter of 2014.

ASV manufactures and sells a line of high quality compact track and skid steer loaders. Trailing 12 months sales for ASV, Inc. were approximately $130 million with Adjusted EBITDA of approximately $14.9 million for the same period.

David J. Langevin, chairman and CEO of Manitex International commented, “We are pleased to be partners with Terex on ASV, and we believe that the transaction is consistent with our long-term diversification strategy in the capital equipment industry. As a niche player, we are continually looking for ways to expand our product offering to our dealers, enter new markets, and position ourselves for future growth. ASV offers us an opportunity to participate in a new area for our business with a company that has an established substantial market position and with an effective and strong partner. This is a great addition to the Manitex product portfolio.”

The consideration for Manitex’s majority share in ASV was $25 million, consisting of a $20 million investment by Terex in MNTX common stock and debt securities, and $5 million in cash. The joint venture had borrowings of approximately $44 million at closing which is non-recourse to Manitex and Terex. (Source: Manitex)