Manitowoc acquires Aspen
Manitowoc is to acquire the assets of Aspen Equipment, a crane dealer and truck body builder/installer based in Bloomington, Minnesota - due south of Minneapolis - for around $51 million. Completion is expected in September.
Aspen sells and rents Grove mobile and Manitowoc crawler cranes, along with National Crane and Elliot boom trucks, Palfinger loader cranes and Palfinger Pro mechanics trucks, along with Bronto Skylift truck mounted lifts. It operates from four locations in Bloomington/Minneapolis, Omaha in Nebraska plus Davenport and Des Moines in Iowa.
The acquisition will expand Manitowoc’s direct sales and service coverage in Iowa, Nebraska, and Minnesota to both rental companies and end users. Aspen’s field support team is also expected to help boost the company’s direct product support coverage network for all of its brands – Grove, Manitowoc and National Crane. It follows the recent acquisition of H&E Equipment Services - see: Manitowoc acquired H&E
Manitowoc chief executive Aaron Ravenscroft, said: “We are pleased to reach this mutually beneficial agreement with Aspen which will position Manitowoc closer to our end markets in the U.S. and complement our pending acquisition of H&E Equipment’s crane business. Aspen is a well established, proven dealer with great upfitting capabilities which will fit great with Manitowoc's National Crane boom truck product offering. We look forward to welcoming the Aspen team to the Manitowoc family. We expect this acquisition will be accretive to adjusted EBITDA in year one.”
“Over the years, Aspen Equipment has developed numerous innovative lifting and final-configuration truck solutions for a variety of end customers. This customer centric approach will provide Manitowoc a solid platform for growth.”
This is yet another step along Manitowoc's way to building not only a strong wholly owned dealer sales network, but also a strong after sales network and services business. Now that it is clear that Manitowoc is stepping up this strategy, it will almost certainly be receiving offers from owners of other crane dealerships who are either looking to check out or sensing a changing crane distribution environment.
Do not expect this to be the last of such acquisitions.