Terex will acquire ASV, a manufacturer of compact rubber track loaders, with headquarters in Grand Rapids, Minnesota. The transaction is valued at approximately $488 million, and Terex expects the merger to close by the end of the first quarter of 2008.
“During the integration process, the integration team will evaluate the best and most effective strategies to add value to the ASV brand and its distribution network, while leveraging the existing brand equity of ASV technologies for Terex Construction,” says Mike Bazinet, director of global communications for Terex. “The key will be to find ways to create new value opportunities across the board,” he adds.
Currently, Caterpillar holds stock in ASV, but the company has indicated it will sell its shares.
Terex plans to add ASV’s compact track loaders to its already existing line of compact equipment.
A Web cast of the conference call detailing facts of the ASV transaction held on Jan. 14 is available in listen-only mode. To hear it click here