MANITOWOC, Wis. — The Manitowoc Co., the leading worldwide manufacturer of high-capacity lattice-boom crawler cranes and tower cranes, last month announced a definitive agreement to acquire Grove Worldwide, a leading manufacturer of mobile hydraulic cranes and truck-mounted cranes. The acquisition, valued at approximately $270 million, will be funded by a combination of cash and approximately two million shares of Manitowoc common stock based on current market prices.

“Grove enhances our market-leading positions, represents a strong growth opportunity for our crane segment, and fills a product void by adding mobile cranes to our product offering. Equally important, we now can provide equipment and lifting solutions for virtually any construction application,” said Terry Growcock, president and CEO of Manitowoc.

Founded in 1947, Grove has an extensive product line including 30 crane models and 8 aerial work platforms, with lifting capacity from 8 tons to 550 tons.

In the transaction, Manitowoc will issue shares of common stock to Grove shareholders and will assume or retire all of Grove's existing debt. Deutsche Banc Alex. Brown, who advised Manitowoc in the transaction, has provided a financing commitment to Manitowoc. The transaction is subject to a number of conditions, including Grove shareholder approval and regulatory approvals.

Grove emerged from Chapter 11 reorganization in September 2001. Former creditors of Grove received substantially all of the stock ownership of the new Grove. Salomon Smith Barney advised Grove in the negotiations with Manitowoc.