05.01.2009

Tadano buys Mantis

Tadano the Japanese based crane manufacturer has purchased Spandeck Mantis, the US based telescopic crawler and specialist re-railer crane manufacturer. Tadano paid $37.5 million for the business, including $8.66 million of debt. The transaction was completed on November 30th.
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A Mantis crane in action

Mantis was owned by the Mitchell family, with chairman Bill Mitchell senior owning a controlling interest. The company, Spandeck Inc, was founded, in its present form in 1985, and has a facility in Franklin, Tennessee and a plant in Richlands, Virginia.

The company has assets of just under $23 million and generated revenues of just over $34 million in fiscal 2007 with net income of $2.69 million.

Tadano says that the deal is part of its strategy to diversify its Lifting Equipment business and will have minimal impact on its full year results to the end of March 2009.

Tadano America president Kenichi Sawada has been named representative director and president. The current executive management team will remain with the business, including chief executive Bill Mitchell who owned 12.5 percent of the company's equity.

Vertikal Comment

Mantis has been looking for a buyer for around 18 months, having pulled through a tough period between 2001 and 2004, since then the company has built up a strong order book and expanded its dealer network and model range adding a 100 tonner in 2007.

The Mitchell’s were also aware that as telescopic crawler cranes become more popular it would face increasing competition and demands for sophistication, although the Mantis cranes are more than a telescopic superstructure on a crawler chassis, having been designed for duty cycle work with reinforced booms to cope with the side forces and wear and tear generated by pick & carry work and lifting off level.

The move is almost certainly a good one for the Mitchell’s and gives Tadano an opportunity to expand its range along with its first North American production facility.

The price looks a little high on an earnings multiple basis, but Tadano would most likely have been in competition with other buyers along with the possibility that the Mitchell’s might have decided to retain the business themselves