19.12.2003

JLG purchases Access Industrie rebuild facility.

JLG announced today that it has signed a letter of intent to purchase the inventory and equipment of the aerial work platform refurbishment centre owned by Accès Industrie in Tonniens in the southwest of France.

As part of the agreement, JLG will sub lease the 2,500 square metre facility that houses the rebuild activity. The operation was set uo in 2001 specifically for the refurbishment, repair and rebuilding of aerial work platforms. The deal is expected to close early in 2004.

Isreal Celli, vice president international sales, marketing and customer support for JLG stated: “This transaction is consistent with our strategy to bring reconditioning services to Europe during this fiscal year and build on our JLG equipment services re-manufacturing model in North America.

"The facility in Tonneins is ideally positioned to serve our customers in Continental Europe, primarily in France, Spain and Italy. We believe there is a significant opportunity in Europe for reconditioning services as an alternative to new machine purchases and many of our customers have inquired about our capabilities.”

Comment:

Access Industrie has been in difficulties since defaulting on its loan repayments last year. After reaching an agreement with most creditors to restructure the debt, a significant proportion of the company’s fleet has been repossessed or returned to the manufacturers.

The company has since had difficulties maintaining the restructured payment programme and discussions and reviews have been ongoing since late summer, 2003.

JLG has had significant exposure to Access Industrie. The question remains, How much of this transaction is a planned strategic move by JLG and how much of it is a pragmatic method of recouping some of the company's exposure to Access Industrie while it can?