14.01.2008

Terex buys A.S.V

Terex has reached an agreement to acquire A.S.V the tracked undercarriage manufacturer through an $18 share tender offer followed by a merger.

ASV is based in Grand Rapids, Minnesota and produces rubber track loaders and accessories, tracked undercarriages and other traction products. It also owns Loegering track systems which have been used on boom lifts.
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An A.S.V skid steer loader

The transaction is valued at $488 million, or $18 per share and is subject to the acceptance and valid tendering of a majority of ASV's common shares, regulatory approvals and other customary conditions.

Caterpillar owns almost a quarter of the ASV stock and is a big ASV customer for its tracked skid steer loaders, it is apparently supporting the takeover.
Terex expects the transaction to close by the end of the first quarter 2008.

Ron DeFeo, Terex chairman and chief executive officer said: "ASV is a leader in compact track loader technology and with the global reach of Terex, we see tremendous opportunity for expanding ASV product sales."

"The ASV acquisition is an excellent strategic and cultural fit and provides a great addition to our product offerings as Terex continues to grow as a global construction equipment manufacturer. From a financial perspective, we expect that ASV will add approximately $220-250 million in sales on a 2008 full-year basis and we are confident that this acquisition will enhance future earnings growth potential for Terex."

Richard A. Benson, chairman and chief executive officer of ASV said: "This combination with Terex is a perfect fit for ASV. We gain access to the resources and know-how of a much larger company with a very impressive global footprint. ASV will have access to a broader product line and our production facilities could benefit significantly from the incremental volume of Terex machines.”

“The timetable for meeting ASV's strategic priorities is accelerated considerably by the merger, which is a big plus for employees, dealers and the communities in which we do business. Caterpillar, a large ASV customer and owner of 23.5 percent of ASV shares, has indicated its support for the merger."