Oshkosh Truck makes $3.2 billion acquisition
agreement
Oshkosh Truck Corporation announced it has signed
a definitive agreement to acquire JLG Industries, Inc. Oshkosh will
acquire all outstanding shares of JLG for $28 per share. This transaction
will create a $6 billion global specialty vehicle manufacturer.
JLG had $2.3 billion in revenues during fiscal
2006 and has estimated a 20 to 25 percent increase in sales in fiscal
2007.
The transaction is expected to be modestly accretive
to Oshkosh’s earnings per share in fiscal 2007 after giving
effect to estimated non-cash charges relating to amortization of
acquired intangibles and other one-time accounting and transaction-related
costs. Oshkosh will finance the transaction with a $3.5 billion
senior credit facility provided by Bank of America, N.A. and JPMorgan
Chase Bank, N.A. and retire most of JLG’s currently outstanding
debt. The acquisition has been approved by the Board of Directors
of each company and is subject to customary closing conditions,
including approval under Hart-Scott-Rodino and similar laws outside
the U.S. and the approval by the shareholders of JLG. The transaction
is expected to be completed within ninety days.
Oshkosh has no plans at this time to make any
significant changes to its combined manufacturing asset base or
work force. |
