Oshkosh - the parent company of JLG, Hinowa, IMT and Jerr Dan - is to acquire AeroTech, a supplier of aviation ground support products, gate equipment and airport services.
It is paying current owner, JBT $800 million in cash for the business. Oshkosh also expects to obtain around $80 million in tax benefits, which would reduce the effective price to $720 million. AeroTech will then become part of the Oshkosh Vocational division which includes loader crane company IMT, fire fighting vehicle and Refuse/Garbage truck businesses. The Aerotech business had revenues in 2022 of $575 million, up 23 percent on 2021, while operating profit improved 33 percent to $43.5 million.
AeroTech manufactures products such as air bridges/Jetways for aircraft boarding, aircraft tugs, baggage tractors and de-icers, through to baggage handling monitoring systems. It serves commercial airlines, airports, air-freight carriers, ground handling and military customers and says that its products serve around 75 percent of travellers passing through US airports, while loading 70 percent of the world’s overnight express packages.
The acquisition is expected to deliver substantial recurring revenue from aftermarket parts and services offerings, while helping with improve Oshkosh’s diversity on terms of market cycles.
Chief executive John Pfeifer said: “This transaction supports our ‘Innovate. Serve. Advance.’ business strategy as we enter the attractive air transportation support space with a market leading portfolio of purpose built products and comprehensive service offerings. AeroTech meets all the criteria of our M&A priorities, and we believe it will enhance the financial profile of our Vocational segment, enabling it to move beyond our goal of $3 billion plus annual revenue with double digit margins."
Comments