Terex and Manitex announce Joint Venture

Terex Corp. and Manitex International Inc. today announced a joint venture in compact track loaders and skid steers.

Under the agreement, Terex said it will sell 51% of A.S.V. Inc. to Manitex, which will result in a joint venture in compact track loaders and skid steers that is 51% owned by Manitex and 49% owned by Terex. The transaction is expected to result in more than $125 million of cash received by Terex, including cash from a recapitalization of ASV prior to closing and a significant amount in tax benefits, the companies said. Upon completion of the transaction, ASV will continue to sell its compact track loaders and skid steers under the Terex brand. The transaction is expected to be completed before the end of 2014.

“The formation of this joint venture is a positive for both Terex and ASV,” said Ron DeFeo, Terex chairman and chief executive officer. “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. (Source: dieselprogress.com)