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Sat 28 Oct 2006 12:00 AM

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Oshkosh buys out JLG in diversification roll out

Oshkosh Truck Corporation has signed an agreement to acquire aerial work platforms and telehandler vehicles manufacturer, JLG Industries.

Oshkosh will acquire all outstanding shares of JLG for US $28 per share.

Total consideration, including transaction costs and assumed debt, is $3.2 billion.

This transaction will create a $6 billion global vehicle manufacturer.

“We have consistently executed strategies to grow this company, creating significant shareholder value during the last decade,” said Robert G Bohn, chairman, president and chief executive officer, Oshkosh.

“The acquisition of JLG is the latest broad-based initiative in the continuing transformation of Oshkosh Truck Corporation.

“It is aligned with our historic acquisition strategy as we expand into complementary markets, and it will be instrumental in building our global focus and scale, which are increasingly needed to continue to be successful.

It also meets our major acquisition criteria, which include market leadership, strong management, double digit growth opportunities and the expectation of earnings in excess of our cost of capital.”

JLG had $2.3 billion in revenues during 2006 and has estimated a 20% to 25% increase in sales in 2007.

It has a top market position in the US and Europe for aerial work platforms and is the top producer of telehandlers in the US.

Upon completion of the transaction, JLG will become the largest of four business segments that comprise Oshkosh.

And the move continues the planned diversification of the company.

In 2008, the first full fiscal year of Oshkosh’s expected ownership of JLG, Oshkosh estimates that JLG will represent approximately 40% of its consolidated sales and operating income.

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