Oshkosh Truck said Monday it signed an agreement to acquire JLG Industries Inc., a maker of aerial work platforms and telehandler vehicles, for $28 per share, or approximately $3.2 billion.
The company primarily serves the construction market, with customers such as equipment rental companies, construction contractors and other manufacturing or industrial companies.JLG had 2006 revenue of $2.3 billion and is anticipated to have a 20-25 percent increase in sales in 2007. Upon completion of the deal, JLG will become the largest of four business segments of Oshkosh. In fiscal 2008, the first full fiscal year of Oshkosh’s expected ownership of JLG, Oshkosh estimates that JLG will represent approximately 40 percent of its consolidated sales and operating income. During the past several years, JLG completed a major realignment of its manufacturing facilities in the United States, Belgium and France. Consequently, Oshkosh has no plans at this time to make any significant changes to its combined manufacturing asset base or work force. JLG has sales and service centers on six continents, in addition to the three countries where it manufactures. The transaction is expected to be completed within 90 days.