The Manitowoc Co. has completed the acquisition of Grove Investors. The final purchase price was $271 million, funded by a combination of cash to be paid at a later date, a private offering of senior subordinated notes due 2012 and Manitowoc stock.
“We’re pleased to officially welcome Grove to the Manitowoc family,” said Terry Growcock, Manitowoc’s president and CEO. “The acquisition represents a strong growth opportunity for Manitowoc by adding mobile cranes to our product offering. In addition, it confirms our position as the world’s leading provider of lifting equipment for the construction industry and allows us to provide equipment and lifting solutions for virtually any construction application.”
Grove will become part of Manitowoc’s Crane segment, adding its line of mobile hydraulic cranes, truck-mounted cranes and boom trucks to Manitowoc’s existing line of lattice-boom crawler cranes and tower cranes.
The private offering of $175 million of 10 1/2 percent senior subordinated notes are guaranteed by certain of its U.S.
subsidiaries. The issuance of the notes and the guarantees were not registered under the Securities Act of 1933, as amended, or applicable state securities laws. The notes were offered only to qualified institutional buyers in reliance on Rule 144A under the Securities Act and pursuant to Regulation S. Unless so registered, the notes and the guarantees may not be re-offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act and applicable state securities laws.