Yanmar America Corporation is set to acquire ASV Holdings after stockholders have voted to approve the $100 million transaction.
ASV Holdings, which engineers rubber-tracked compact track loaders and wheeled skid steer loaders, agreed to the merger with ASV shareholders are to receive $10.04 (7.05 USD) in cash for each outstanding share of ASV common stock.
The transaction is expected to close on 11 September 2019, subject to customary closing conditions.
Japanese company Yanmar is a global provider of compact equipment for construction, agriculture, energy, marine equipment, and machine tools.
ASV’s manufacturing and distribution centre, international distribution network and employees are key to Yanmar’s long-term international growth plans into North America.
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In addition to the agreement, a subsidiary of Terex Corporation, which owns 34 per cent of the outstanding shares of ASV, has entered into a stockholder voting agreement in support of the merger.
“Yanmar is a strong strategic buyer for ASV,” said ASV Chairman and CEO, Andrew Rooke.
“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.
“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.