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Bronto to sell via Oshkosh affiliate

Finnish based truck mounted lift manufacturer Bronto has agreed an exclusive supply and distribution agreement with Pierce Manufacturing a subsidiary of Oshkosh, which also owns JLG.

Under the terms of the deal, announced overnight, Bronto will become Pierce's sole supplier of articulated aerial lifts for fire fighting applications in the North American market. Bronto fire equipment will also be distributed exclusively in the USA through Pierce's dealer network. The deal also includes Bronto parts and service for its fire fighting equipment.

Bronto’s industrial lifts for general applicaitons such as wind power and electric transmission line maintenance etc... as well as related parts and service, are unaffected by the agreement with Pierce, and will continue to be sold through Bronto's existing distribution channels.

Bronto managing director Esa Peltola said: "This new relationship with Pierce marks an important milestone in the growth of Bronto in North America. We feel that each company will benefit from the other's reputation for high quality and innovation. But fire departments and those they protect, first and foremost, will be the biggest beneficiaries."

Dennis J. Martin chief executive of Federal Signal- Bronto’s owner added: "We are pleased to establish this important relationship with the leading North American manufacturer of custom fire apparatus. Bronto's articulated hydraulic platforms are recognised around the world as best in class. When coupled with the build quality and innovation that Pierce is renowned for, we believe that North American fire departments will now have an opportunity to obtain the most capable high-access fire fighting vehicles ever made."

Vertikal Comment

This is an interesting development and one that appears to make good sense for both parties. A point though that might make it more interesting is that it is no secret that Federal Signal has been looking to divest itself of Bronto over the past 18 months or so.

This even though it has been one of the corporation’s best performers through the recession. It would have the potential though to raise funds in order to support what it considers to be its core businesses.

One wonders if Oshkosh, already heavily in the access business with JLG might have considered acquiring the company rather than signing a distribution agreement? It could be of course that Federal Signal has now changed its mind?


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