Closing Time: Industry Deals Are Finalized
The last week or so has seen a number of previously announced industry acquisitions close. They include the following:
• First announced in early December, Terex Corp. said it has completed the sale of its truck business to Volvo Construction Equipment for a purchase price of $160 million. The truck business manufactures and sells off-highway rigid and articulated haul trucks. Included in the transaction is the manufacturing facility in Motherwell, Scotland and a share of Inner Mongolia North Hauler Joint Stock Co (NHL), which manufactures and sells rigid haulers under the Terex brand in China, as well as distribution of haulers in the U.S. and intellectual property.
The acquisition includes five models of rigid haulers, with payloads ranging from 32 to 91 tons. The deal also sees a further three models of articulated hauler added to the Volvo portfolio, with payloads ranging from 25 to 38 tons.
• Joy Global Inc. closed on its purchase of certain assets of Mining Technologies International Inc. (MTI) on May 30, 2014 for $51.0 million Canadian dollars, subject to a working capital adjustment. MTI is a Canadian manufacturer of underground hard rock mining equipment serving the North American markets and is a supplier of raise bore drilling consumables. Joy has acquired substantially all of the assets associated with MTI’s hard rock drilling, loaders, dump trucks, shaft sinking, and raise bore product lines.
• Deere & Co. substantially completed the sale of its irrigation operations pending certain regulatory approvals. In February, Deere reported it had reached a definitive agreement to sell the John Deere Water operations to FIMI Opportunity Funds, a private equity firm in Israel. Terms of the transaction were not made public.
• Earlier in May, Alamo Group Inc. announced it completed its acquisition of the operating units of Specialized Industries, LP, for a total consideration of approximately $190 million. This deal includes: Super Products, a manufacturer of vacuum trucks and related equipment; Wausau-Everest a manufacturer of snow removal equipment; and Howard P. Fairfield a dealer/distribution operation primarily in the New England area. Together, the three businesses had net sales of $146.7 million in the fiscal year ending December 31, 2013.
Plus, GE finalized its acquisition of Cameron’s Reciprocating Compression division for $550 million and Gorman-Rupp Co. said its wholly-owned subsidiary, National Pump Co. has completed its purchase of the business of Bayou City Pump, Inc., in Houston, Texas.