MCCONNELLSBURG, Pa. — Oshkosh Truck Corp., a leading manufacturer of specialty vehicles and vehicle bodies, last month completed the acquisition of JLG Industries for $28 per share in an all-cash transaction valued at approximately $3.2 billion. JLG shareholders approved the agreement and plan of merger of JLG, Oshkosh Truck Corp. and Steel Acquisition Corp., a wholly owned subsidiary of Oshkosh, which cleared the way for completion of the agreement. With the addition of JLG's forecasted revenues, Oshkosh Truck now expects to surpass $6 billion in net sales for fiscal 2007.
“I am pleased to welcome JLG, the world leader in aerial work platforms and telehandlers, to the Oshkosh family of companies,” said Robert Bohn, Oshkosh's chairman, president and CEO. “This acquisition further strengthens our company by diversifying our product offerings and customer segments, providing scale in procurement and broadening our global reach, which are all important to our growth plans. JLG is also the 15th acquisition we've made under the current management team in the last 10 years. It will operate as our fourth and largest segment. JLG follows our formula for acquisition success, which includes strong management, double-digit growth opportunities and the expectation of returns in excess of our cost of capital.”
The company also affirmed its previous estimates that the Oshkosh stand-alone earnings per share, without giving effect to the JLG acquisition, are expected to be $3.05 to $3.15 and that the JLG acquisition will be modestly accretive to its stand-alone EPS for the fiscal year ended Sept. 30, 2007. In addition, JLG announced it submitted a request to the New York Stock Exchange for withdrawal of the listing of its common stock, which was effective Dec. 8.
Bohn appointed Charles Szews, executive vice president and chief financial officer, to serve as interim president of JLG and lead the integration process. Szews will also continue to act in his current capacity as executive vice president and chief financial officer of Oshkosh Truck.
The company expects that several key executives will continue with JLG including: Craig Paylor, senior vice president of sales and marketing, who has been with JLG for more than 20 years in a variety of leadership and executive roles; Peter Bonafede, senior vice president of manufacturing and supply chain management, who has been with JLG for more than seven years in various operations and supply chain management positions; and Wayne MacDonald, senior vice president of engineering, who has been with JLG for more than 30 years in many different engineering and technology development roles.
Former JLG chairman, CEO and president Bill Lasky; executive vice president and chief financial officer Jim Woodward; and senior vice president and general counsel Tom Singer are no longer with the company.
“Oshkosh expects to integrate JLG by applying its successful method of cross-functional collaboration,” said Szews. “We have eight operational teams, with members from both Oshkosh and JLG, leading the integration initiative and focused on specific near- and long-term objectives. Planning is well under way and we are pleased with initial progress. In addition, the company is enlisting external consulting resources in select areas to spur velocity and provide expertise in effective integration. The similar cultures and shared values of our organizations are integral to this process, and we expect they will enhance productivity throughout the integration process.”
Oshkosh, Wis.-based Oshkosh Truck Corp. is a designer, manufacturer and marketer of a broad range of specialty access equipment; commercial, fire and emergency, and military vehicles; and vehicle bodies. Oshkosh's products are used worldwide by rental companies, fire and emergency units, defense forces, municipal and airport support services, and concrete placement and refuse businesses.
In other company news, JLG's new Orrville, Ohio, parts distribution center, which began operations in July, celebrated its official opening in mid-October with an open house for employees, their families and the community. The service parts distribution center was relocated to Orrville as part of a major manufacturing realignment.
The distribution center consolidates parts from three facilities into a central location capable of serving JLG's global customers. Parts and components are available from JLG's PartsPLUS program for all JLG brands of aerial work platforms and telehandlers as well as competitive products.