Japanese cranemaker Tadano Corp. decided at its board meeting this week to acquire all the remaining shares of U.S. manufacturer Manitex. Tadano already owned 14.5 percent of Manitex shares. The two companies entered into a definitive merger agreement Sept. 12.
Brown Gibbons Lang & Co. (BGL)’s Engineered Equipment investment banking team served as the exclusive financial advisor to Manitex in the transaction. Under the terms of the transaction, Tadano will acquire Manitex in an all-cash transaction valued at $223 million or $5.80 per share, a 52-percent premium over the closing price for the last trading day.
Headquartered in Bridgeview, Ill., Manitex is a leading international manufacturer of truck cranes, aerial work platforms, specialized lifting solutions, and construction equipment rentals to infrastructure, maintenance, utility, manufacturing, and construction markets. Manitex engineers and manufactures its products in North America and Europe, distributing them through its proprietary dealers worldwide. The company’s globally recognized brands include Manitex, PM, Oil & Steel, Valla, and Rabern Rentals.
“We aim to pursue further excellence for the world and the future by contributing to the preservation of the environment and the realization of a sustainable society through maximizing value to our stakeholders and engaging in sustainable business activities,” Tadano officials said in a statement. In the mid-term management plan, Tadano has set ‘venture into new areas’ as a key driver in the company’s growth strategy.
Founded in 1919 and headquartered in Takamatsu, Japan, Tadano is an original equipment manufacturer and distributor of construction and vehicle-mounted cranes, aerial work platforms, and other specialized material handling solutions sold globally under a set of highly recognized brands.
The transaction is expected to close early in the first quarter of 2025, following receipt of shareholder and regulatory approval.
Tadano first ventured into potential ownership of Manitex in 2018 and currently owns 14.5 percent of its shares. The brands under Manitex include boom trucks, knuckle boom cranes under the “PM” brand; mobile elevating work platforms under its “Oil & Steel” brand, and small electric cranes under the “Valla” brand.
Expanding in the aerial business
“In terms of the balance among the three main segments of our group’s business portfolio (mobile cranes, truck loader cranes, and aerial work platforms), the acquisition of Manitex is expected to lead to the future expansion of our global business in truck loader cranes and aerial work platforms, and to create a more balanced portfolio structure,” Tadano said.
Tadano will acquire all outstanding shares of Manitex not already owned by Tadano for $5.80 per share in cash, representing an equity value of $122 million and total transaction value of $223 million, including outstanding debt. The purchase price represents a premium of approximately 52.2 percent over Manitex’s closing share price of $3.81 on September 11th, 2024, the last full trading day before announcement of the transaction, and a premium of approximately 47.9 percent to the 30-day volume weighted average price of Manitex’s shares through September 11th, 2024.
The transaction will be financed through a combination of Tadano’s own cash reserves and external debt financing. The agreement has been approved by the boards of Tadano and Manitex. The transaction is anticipated to close in the first quarter of 2025, subject to approval by Manitex shareholders receipt of regulatory approvals and other customary closing conditions.
Upon completion of the transaction, Manitex will become a wholly owned subsidiary of Tadano and Manitex’s shares will no longer be listed on the Nasdaq. In this transaction, Perella Weinberg Partners is serving as exclusive financial advisor and Sullivan & Cromwell LLP is serving as legal counsel to Tadano. Brown Gibbons Lang & Company is serving as exclusive financial advisor and Bryan Cave Leighton Paisner LLP is serving as legal counsel to Manitex.
