JLG Sells Excavator Product Line

Posted on February 3, 2006

JLG Industries announced that it has sold its line of Gradall excavators to Alamo Group Inc. for a cash consideration of $39.4 million. The sale includes the 430,000 sq. ft. manufacturing facility in New Philadelphia, Ohio, and related equipment, machinery, tooling and intellectual property. The Gradall excavator product line includes highway-speed, crawler and wheeled models.

The Alamo Group manufactures equipment for right-of-way maintenance and agriculture, including tractor and truck mounted mowing and other vegetation maintenance equipment, street sweepers, agricultural implements, front-end loaders, backhoes and related aftermarket parts and service. Along with the purchase agreement, the companies have executed a supply agreement covering those components for JLG's telescopic material handler product lines that are currently manufactured at the New Philadelphia facility.

"Divesting this product line is consistent with our strategy of focusing our efforts on our core access business and the proceeds from the sale will be used to continue implementing our growth strategy," commented Bill Lasky, JLG's chairman, president and CEO. "The Gradall excavator is a well known and highly respected niche product line, but it is not a core business for JLG. With this ownership change, the New Philadelphia excavator team will find more opportunities to flourish and grow with a more closely aligned family of products."

"This is an exciting development for Alamo as the Gradall excavator is a high quality product that serves a unique niche in the market with its telescoping boom arm arrangement," said Ron Robinson, Alamo Group's President and CEO. "Over half of the excavator sales are to governmental buyers and related contractors for grading and maintenance along right-of-ways which makes it an ideal fit with our Industrial Division."