Manitex Buys Italian Manufacturer
Manitex International, Inc., Bridgeview, Ill., a manufacturer of cranes and specialized material and container handling equipment, announced that it has reached an agreement to acquire PM Group S.p.A., San Cesario sul Panaro, Modena, Italy. The agreement is subject to pending Italian court approval of a debt restructuring plan.
PM-Group S.p.A., is a manufacturer of truck mounted hydraulic knuckle boom cranes. Its largest subsidiary, Oil & Steel, O&S), is a manufacturer of truck-mounted aerial platforms. Combined, O&S and PM add nearly 510,000 sq ft. of assembly and manufacturing space, between two locations in San Cesario S/P, Modena, and in Arad, Romania.
Manitex said the deal is for $107 million including $24 million in cash provided by a new Manitex term loan with current Manitex bankers; $15 million in new equity issuance (approximately 1 million Manitex shares) distributed primarily to current PM banks; and $68 million in assumed debt and liabilities which includes working capital facilities for PM
Trailing twelve months revenues for PM through June 2014 was approximately $106 million. The acquisition is expected to close in the fourth quarter of 2014, upon Italian Court approval and management expects this to be immediately accretive to Manitex International's net earnings in 2014.
David Langevin, chairman and chief executive officer of Manitex said, "the combination of Manitex International and PM-Group results in a company with annual pro forma revenues in excess of $350 million and EBITDA margins that are consistent with our historical EBITDA margins. PM has excellent management, global distribution with particular strength in South America, Europe and Africa and a product portfolio that we can introduce to Manitex's strong North America distribution network which we believe will allow for further growth in sales and EBITDA in 2015 and beyond."
Manitex International, Inc. designs, manufactures and markets lifting, material and container handling equipment, spanning boom truck, telescopic, rough terrain and industrial cranes, reach stackers and associated container handling equipment, rough terrain forklifts, mobile liquid and solid containment solutions, and specialized trailers and mission oriented vehicles.Edit Module