McCONNELSBURG, Pa. — JLG Industries and Textron last month announced the signing of a definitive agreement under which JLG will acquire the OmniQuip business unit of Textron.
JLG, based here, will purchase the assets of Trak International, which include all operations relating to the Sky Trak and Lull brand telehandler products for a cash purchase price of $100 million. Textron acquired Omniquip in 1999 for $477 million. Omniquip then included the Snorkel line of scissor and boomlifts, but it sold that line in December of 2002. According to analysts, the acquisition price reflects Textron's willingness to walk away from Omniquip to focus on its aircraft, helicopters, power transmission, fuel tanks and golf-course turfcare businesses.
Including integration expenses, the acquisition is expected to be 8 to 10 cents accretive to JLG earnings per share in the first full year of combined operations and substantially more accretive in subsequent years.
Sales of the purchased operations in calendar year 2002 totaled approximately $217 million. The transaction has been approved by the boards of directors of both companies and is subject to customary conditions, including federal regulatory approval.
In addition to being North America's leading manufacturer of aerial work platforms, JLG also owns Gradall, a major supplier of material handling equipment, which it acquired in 1999. Omniquip is the leading North American manufacturer of material load handlers. Based in Port Washington, Wis., it has six plants in Wisconsin, North Dakota and Minnesota.
“The Sky Trak and Lull brands, like our JLG and Gradall brands, have solid brand name recognition and are known for innovation, quality, reliability and durability,” said Bill Lasky, JLG chairman, president and CEO. “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 design and distribution channels, we have identified and will realize significant ‘hard’ synergies, allowing JLG to apply its competencies in manufacturing, engineering, new product development and supply chain management.”