Manitex International, provider and manufacturer of cranes and specialized material and container handling equipment, has reached an agreement to acquire PM Group S.p.A., an Italian manufacturer of truck-mounted hydraulic knuckle boom cranes, with a 50-year history and a product range with more than 50 models.

PM Group’s largest subsidiary, Oil & Steel, is a manufacturer of truck-mounted aerial work platforms.

The agreement is subject to pending Italian court approval of a debt restructuring plan. A consideration of $107 million includes $24 million in cash provided by a new Manitex term loan with current Manitex bankers, as well as $15 million in new equity issuance distributed primarily to current PM banks. The deal also includes $68 million in assumed debt and liabilities, including working capital facilities for PM.

Trailing 12-months revenues for PM through June was about $106 million with EBITDA margins consistent with those of Manitex, about 9 percent of sales. The acquisition is expected to close in the fourth quarter of 2014 upon Italian court approval Manitex management expects the acquisition to be immediately accretive to 2014 net earnings.

Combined PM and Oil & Steel have nearly 510,000 square feet of assembly and manufacturing space between two locations in San Cesario S/P, Modena, Italy, and Arad, Romania.

“In PM Group, we have again found an exceptional opportunity to add new branded product lines, enhance our earnings power, and create value for our shareholders,” said David Langevin, Manitex chairman and CEO. “PM is a substantial company that has performed very well despite a depressed European economy and a very heavy debt load incurred from its 2008 LBO refinancing. With a restructuring of its debt, which includes a reduction of more than $65 million, and evidence of the beginnings of a European recovery, we believe that this is a very attractive acquisition for us from a financial standpoint. This acquisition also expands our product portfolio nicely, enabling us to offer our dealers both straight-mast and knuckle boom cranes, each with unique benefits, functionality and niche market applications.”

PM Group is based in San Cesario sul Panaro, Moderna, Italy. Manitex is headquartered in Bridgeville, Ill.