Manitex International, a provider of cranes and specialized material and container handling equipment, and Terex Corp., have completed the formation of their joint venture, making Manitex the majority owner of ASV, makers of compact track loaders and skid-steer loaders. As a result of the transaction, Manitex now owns 51 percent of ADV, and Terex owns 49 percent.
ASV’s financial results will be included in Manitex International’s consolidated results beginning in the fourth quarter.
Trailing 12-month sales for ASV were about $130 million, with adjusted EBITDA of about $14.9 million for the period.
“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,” said David Langevin, chairman and CEO of Manitex. “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 cash. Terex received more than $125 million of cash in the deal, including cash from a recapitalization of ASV prior to closing.
Manitex is headquartered in Georgetown, Texas; Terex is based in Westport, Conn.