Done Deal: Oshkosh Acquires JLG
Posted on December 6, 2006
Oshkosh Truck Corp. said it has completed the acquisition of JLG Industries, Inc. for $28 per share in an all cash transaction valued at approximately $3.2 billion. With the addition of JLG's forecasted revenues, Oshkosh Truck now expects to surpass $6 billion in net sales for fiscal 2007.
Robert G. Bohn, Oshkosh's chairman, president and chief executive officer said Charles L. Szews, executive vice president and chief financial officer, will serve as interim president of JLG and lead the integration process. Szews will also continue to act in his current capacity as executive vice president and chief financial officer of Oshkosh Truck.
Further, the company expects that several key executives will continue with JLG, including: Craig E. Paylor, senior vice president of sales and marketing, Peter L. Bonafede, senior vice president of manufacturing and supply chain management, and Wayne P. MacDonald, senior vice president of engineering,
"I am pleased to welcome JLG, the world leader in aerial work platforms and telehandlers, to the Oshkosh family of companies. This acquisition further strengthens our company by diversifying our product offerings and customer segments, providing scale in procurement and broadening our global reach, which are all important to our growth plans," said Bohn.
Oshkosh also said it has a new credit agreement with Bank of America NA. Oshkosh said it used the credit agreement to fund the $3.2 billion purchase of construction equipment maker JLG Industries Inc.
Under the new agreement Oshkosh has access to a $550 million revolving credit facility and a $500 million term loan, each maturing in December 2011, as well as a $2.6 billion term loan facility that matures in December 2013. The company can also increase the amount of the facility by $250 million under certain conditions.