A provider of compact construction equipment has entered into a $100 million (70.7 million USD) merger agreement with Japanese company Yanmar Holdings.
ASV Holdings, which engineers rubber-tracked compact track loaders and wheeled skid steer loaders, has agreed to the merger. ASV shareholders are set to receive $10.04 (7.05 USD) in cash for each outstanding share of ASV common stock.
Yanmar is a global provider of compact equipment with almost no overlap in distribution networks. It began in Osaka, Japan, in 1912 and was one of the first to succeed in making a compact diesel engine of a practical size in 1933.
ASV employees, its manufacturing and distribution facility, international distribution network and supply chain is a key part of Yanmar’s long-term international growth plans into North America.
The transaction is subject to approval by ASV stockholders and other closing conditions and is expected to close in the third quarter of 2019.
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In addition to the merger agreement, a subsidiary of Terex Corporation, which owns 34 per cent of the outsanding shares of ASV, has entered into a stockholder voting agreement in support of the merger.
ASV Chairman and CEO, Andrew Rooke, said the company is excited to announce the transaction with Yanmar.
“Yanmar is a strong strategic buyer for ASV. Yanmar shares our vision to provide the highest-quality products, values the long legacy of ASV and is committed to supporting its employees and distribution partners,” Rooke said.
“In addition to maximizing value for ASV stockholders, the merger will create a strong platform for growth and expansion, bringing together two leading brands with similar cultures and creating value.
“Yanmar Compact Equipment will gain its only manufacturing facility in North America, here in Grand Rapids, Minnesota, and will contribute its considerable global presence and financial strength, making way for continued product development and innovation within the track loader and compact construction equipment category for years to come.”
Yanmar Holdings Executive Officer, Giuliano Parodi, said the company believes the ASV acquisition will bolster Yanmar’s Compact Equipment offerings in the loader segment.
“With its highly-skilled workforce and quality CTL/SSL lineup, ASV is a great fit for both Yanmar’s focus on quality, and our growth and expansion plans in the North American and global markets as it will create a comprehensive and global provider of Compact Equipment with virtually no overlap in distribution networks,” Parodi said.