Manitex International, a leading provider of boom truck cranes, rough-terrain forklifts and special mission-oriented vehicles, last week acquired Badger Equipment Co., a Winona, Minn-based manufacturer of specialized rough-terrain cranes and material handling products. Terms of the acquisition included $250,000 in Manitex common stock and a $2.75 million five-year note bearing interest at 6 percent, for an aggregate purchase price of $3 million.
Badger, previously owned by Avis Industrial, had revenues of about $10 million, EBITDA of about $500,000 and positive net income in 2008.
Earlier this year, Badger announced plans to introduce a new line of specialized high-quality rough-terrain cranes, including a 30-ton model to its national dealer base, with expected shipments to begin in the second half of 2009. Manitex sees the line as an excellent addition to its product offering, primarily serving the construction, municipality and railroad industries. Manitex said the launch of the line remains on schedule, with initial shipments expected this quarter.
David Langevin, Manitex chairman and CEO, said Manitex intends to maintain Badger’s manufacturing operations at its leased Winona, Minn., facility and to operate Badger as a Manitex subsidiary. “The acquisition of Badger’s specialized product lines will expand our market opportunities, through offering new product lines to our current dealers, and expanding our dealership network,” Langevin said. “We are particularly excited about the opportunity to introduce the new 30-ton rough-terrain crane, which we will begin to ship against orders in-hand in this current quarter. We anticipate moderate revenue and cash flow contributions in the second half of this year from Badger, with more substantial impact occurring in following years, primarily driven by the strength of this new product’s launch.”
Badger Equipment began operations in 1945 and has manufactured and sold more than 10,000 units since its inception.
