After a thorough review of a wide range of strategic alternatives, the board of directors of West Bend, Wis.-based Gehl Co. decided not to sell the company.
“After reviewing all potential alternatives, … including acquisitions, strategic alliances, divestitures, a leveraged buyout, recapitalization and a sale of the company, the board unanimously concluded that it is in the best interests of all shareholders to continue to execute the long-term strategic plan outlined by the company in February 2001,” said William Gehl, CEO.
Gehl added that the board carefully considered each of the acquisition offers the company received, concluding that “all of the offers were either not at adequate price levels or highly conditional or both. The macro-economic climate and financial markets are not conducive to receiving appropriate strategic valuations for the business from potential acquirers.”
The company, however, announced several measures to streamline operations. Gehl will close its manufacturing facility in Lebanon, Pa., and transfer production to other locations. Gehl will also transfer the manufacturing of its Mustang line of skid steer loaders from its existing facility in Owatonna, Minn., to its recently expanded Madison, S.D., plant. The consolidations will result in a layoff of about 10 percent of Gehl's workforce, totaling about 100 employees. Gehl attributed the rationalization initiatives to “the deepening global economic slowdown.”
Gehl's board of directors also authorized the repurchase of up to 500,000 shares, approximately 9 percent of its stock.
