By Lisa Kerner
Charlotte, N.C., Jan. 14 - Terex Corp. agreed to acquire A.S.V., Inc. in what Terex called an "excellent strategic and cultural fit," it was announced on Monday.
The transaction, valued at about $488 million, or $18 per share, is slated to close by the end of the first quarter.
Terex will complete the acquisition through a tender offer followed by a merger, a company news release stated.
"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," Terex chairman and chief executive officer Ronald M. DeFeo said in the release.
"From a financial perspective, we expect that ASV will add approximately $220 to $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," DeFeo added.
Caterpillar Inc., owner of 23.5% of ASV shares, supports the merger, according to the release.
"This combination with Terex is a perfect fit for ASV," Richard A. Benson, chairman and CEO of ASV, said in the release. "We gain access to the resources and know-how of a much larger company with a very impressive global footprint."
Terex is a diversified manufacturer located in Westport, Conn. The company had 2006 net sales of $7.6 billion.
ASV, based in Grand Rapids, Minn., manufactures compact rubber track loaders and related accessories, undercarriages and traction products.
| Acquirer: | Terex Corp.
|
| Target: | A.S.V., Inc.
|
| Announcement date: | Jan. 14
|
| Transaction total: | $488 million
|
| Price per share: | $18.00
|
| Expected closing: | First quarter of 2008
|
| Stock price of target: | Nasdaq: ASVI: $12.29 on Jan. 11
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