William Gehl, president and CEO of West Bend, Wis.-based Gehl Co., said the company is considering a number of options, including sale of the firm as the company struggles with reduced demand for its products.
A company spokesman said Gehl might also consider re-capitalization, a leveraged buyout, acquisition or a strategic alliance.
“Given current macroeconomic conditions and the changing markets in which Gehl competes, we believe it is appropriate for the board to undertake a thorough review of the full range of strategic alternatives to determine the best course of action to maximize shareholder value,” Gehl said. “Nothing is off the table.”
An investment group headed by Texas billionaire Harold Simmons had offered $100 million to buy the company but that offer was rejected. Pressure has since mounted to reconsider the offer, particularly in light of Gehl's poor first-quarter performance.
For the quarter ended March 31, Gehl posted net income of $1.0 million, 19 cents, compared with $4.1 million, 70 cents, a year earlier, and first-quarter sales dropped to $63.7 million from $72.0 million a year ago.
In April, Neuson AG, a construction equipment manufacturer in Litz, Austria, purchased a 5.7 percent stake in Gehl.
