BRIDGEVIEW, Ill., Oct. 29, 2014 /PRNewswire/ -- Manitex
International, Inc. (Nasdaq: MNTX), a leading international
provider of cranes and specialized material and container handling
equipment, today announced an agreement to form a Joint Venture
with Terex Corporation in ASV, which has been a wholly-owned
subsidiary of Terex (NYSE:TEX) since 2008, with its manufacturing
facility in Grand Rapids, MN. As a
result of the transaction, Manitex will own 51% of ASV and Terex
will own 49% of ASV.
ASV's broad product line of technology-leading compact
rubber-track and skid-steer loaders and accessories, extends
Manitex's footprint to new markets, further adding to the company's
diverse product portfolio offered through equipment dealers,
worldwide. Total sales for ASV, Inc. are forecasted to be
approximately $128 million in 2014
with gross margins and adjusted EBITDA* margins roughly in-line
with those of Manitex.
David J. Langevin, Chairman and
CEO of Manitex International commented, "We are excited to add a
new branded product group to the Manitex family and are proud to
announce that Terex, a long-standing leader in the capital
equipment space, has selected us as its partner in ASV. We see
encouraging signs in the end-markets in which ASV operates, and
expect a gradual recovery throughout 2015. This transaction gives
us an opportunity to increase our presence in the broader housing
and construction markets, and consequently, increase earnings power
for our company, beginning in the first quarter of 2015. Upon
closing this transaction and the acquisition of PM Group, also
expected to take place before year end, we would expect to enter
2015 as a company that has worldwide revenues of over $500 million, 9% EBITDA margins, and the ability
to generate significant profits and value for our shareholders
going forward."
Ron De Feo, Chairman and CEO of
Terex, commented, "We are pleased to announce this joint venture
with Manitex International and are confident they will bring
additional value to the ASV business. We believe this will be a
very productive transaction for both Terex and Manitex shareholders
and look forward to continuing to serve our customers and all
stakeholders with the same degree of excellent products and
services they have come to expect."
The consideration for Manitex's majority share in ASV will be
$25 Million, and the transaction is
expected to close in the fourth quarter of 2014. At the time of our
acquisition ASV will have approximately $60
million in bank debt which is non-recourse to Manitex and
Terex. In a separate transaction, Terex has agreed to invest
$20 million in Manitex common stock
and convertible debt securities.
*Adjusted EBITDA is calculated by: GAAP Net Income plus Income
Tax plus Depreciation and Amortization plus Interest Expense plus
Foreign Currency Transaction gains/losses plus Other
(Income)/Expenses.
About Manitex International, Inc.
Manitex International, Inc. designs, manufactures and markets a
portfolio of highly engineered and customizable lifting, material
and container handling equipment, spanning boom truck, telescopic,
rough terrain and industrial cranes, reach stackers and associated
container handling equipment, rough terrain forklifts, mobile
liquid and solid containment solutions, and specialized trailers
and mission oriented vehicles, including parts support. We
have accumulated nearly a dozen brands since going public in 2006
and operate internationally through eight subsidiaries with design
and manufacturing facilities in the USA, Canada
and Italy.
Manitex Inc, in Georgetown, TX,
manufactures a comprehensive line of boom truck and
telescopic cranes and sign cranes, primarily used in industrial
projects, energy exploration and infrastructure development,
including roads, bridges, and commercial construction. Badger
Equipment Company, in Winona, MN,
manufactures specialized rough terrain and industrial cranes and
primarily serves the needs of the construction, municipality, and
railroad industries. Our Italian subsidiary, CVS Ferrari, srl,
designs and manufactures a range of reach stackers and associated
lifting equipment for the global container handling market.
Our Manitex Liftking subsidiary is a provider of material handling
equipment including the Noble straight-mast rough terrain forklift
product line, Lowry high capacity
cushion tired forklift as well as specialized carriers, heavy
material handling transporters and steel mill equipment. Manitex
Liftking's rough terrain forklifts are used in commercial
applications and by the world's largest military and peace keeping
organizations. Our subsidiary, Manitex Load King located in
Elk Point, South Dakota is a
manufacturer of specialized engineered trailers and hauling
systems, typically used for transporting heavy equipment. Manitex
Sabre based in Knox, Indiana,
builds mobile specialized tanks for liquid storage and containment
solutions for a variety of end markets such as petrochemical, waste
management and oil and gas drilling. Manitex Valla located in
Piacenza, Italy, manufactures a
full range of mobile precision pick and carry cranes from 2 to 90
tons, using electric, diesel, and hybrid power options with
configurable special applications designed specifically to meet the
needs of its customers.
Our Crane and Machinery division is a Chicago based distributor of cranes including
Terex truck and rough terrain cranes, PM knuckle boom cranes and
our own Manitex International brands. Crane and Machinery provides
aftermarket service in its local market as well as being a leading
distributor of OEM crane parts, supplying parts to customers
throughout the United States and
internationally. The division also provides a wide range of
used and refurbished lifting and construction equipment of various
ages and conditions as well as operating a rental fleet of
equipment to the Tri-state area.
Company
Contact:
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Manitex
International, Inc.
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Darrow Associates,
Inc.
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David
Langevin
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Peter Seltzberg,
Managing Director
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Chairman and Chief
Executive Officer
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Investor
Relations
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(708)
237-2060
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516-510-8768
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djlangevin@manitexinternational.com
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pseltzberg@darrowir.com
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SOURCE Manitex International, Inc.