27
Jun

Yanmar buys ASV for $70.7 million, will bolster product lineup with “nearly no overlap in distribution networks”

Simply launched: the VT-70 Excessive Output compact observe loader.

Yanmar Holdings introduced right this moment that it’s buying ASV Holdings for $70.7 million by way of the mechanism of a statutory merger, a deal it says might be completed with “nearly no overlap in distribution networks.”

In an announcement launched right this moment Giuliano Parodi, government officer of Yanmar Holdings, says, “We consider that the Yanmar Group’s acquisition of ASV will considerably bolster Yanmar’s compact gear choices within the loader phase, a product vary very important for fulfillment within the all-important North American market.

“With its highly-skilled workforce and high quality CTL/SSL lineup, ASV is a good match for each Yanmar’s concentrate on high quality, and our development and growth plans within the North American and world markets,” says Parodi. The ASV worker base, its manufacturing and distribution facility, worldwide distribution and provide chain will create a robust platform for North American growth and be a key a part of Yanmar’s long-term worldwide development plans, say the 2 firms.

ASV brings its CTL undercarriage expertise to Yanmar, which ought to assist it acquire gross sales within the ag and panorama markets in addition to development. For extra on ASVs undercarriage expertise, see our current report right here. (An outline of every firm’s product line is featured within the subsequent part.)

“The merger will create a robust platform for development and growth, bringing collectively two main manufacturers with related cultures and creating worth,” mentioned Andrew Rooke, chairman and CEO of ASV. “The ASV product is complementary to the Yanmar portfolio of compact gear making a complete gear answer for present and future clients.” Rooke additionally famous that the acquisition will carry Yanmar its solely manufacturing facility in North America: ASV’s manufacturing unit in Grand Rapids, Minnesota.

Yanmar says it expects the acquisition to shut within the third quarter of 2019 topic to approval by ASV stockholders. The corporate will purchase 100 % of ASV’s excellent shares of widespread inventory for $70.7 million or $7.05 per share—fairly a cut price contemplating that Terex acquired ASV in for $488 million in 2008, and Manitex purchased 51-percent of the corporate from Terex for $125 million in 2014. ASV Holdings accomplished an IPO in Could, 2017. As of March 2019, the corporate possession was 55 % public, 34 % Terex and 11 % Manitex.

ASV Holdings company history timeline

Supply: ASV Holdings Could, 2019 company presentation

In keeping with a Could 2019 investor presentation, the corporate noticed $127.6 million in web gross sales in fiscal 12 months 2018, 82 % of which was in North America. It at present has 293 supplier/rental places and including retail distribution places in North America was a part of its development technique. The MSRP for brand new ASV fashions ranges from $43,00zero to $125,00zero, relying on options and capability. It additionally gives Caterpillar and others with undercarriages.

Building merchandise

Right here’s an summary of ASV’s and Yanmar’s present product providing as reported within the 2019-20 Gear World Spec Information & Yearbook, which might be printed this October.

Maybe an early indicator of the ASV purchase, Yanmar declined to replace its specs for its two CTL fashions (T175-1, T210-1) and 4 skid steer fashions (S165R-1, S190R-1, S220R-1, S270V-1) for this 12 months’s Spec Information, though the Yanmar CTLs are nonetheless listed on its web site as of right this moment.

Along with the merchandise listed beneath, Yanmar additionally manufactures tracked carriers, utility automobiles and utility tractors, in addition to industrial and marine engines.

ASV compact observe loaders

ASV compact track loaders data

ASV skid steers

ASV skid steers dataYanmar compact excavators

Yanmar compact excavators data

Yanmar wheel loaders

(Observe: along with the compact wheel loader fashions beneath, Yanmar additionally makes the 100-horsepower, 1.6-cubic-yard bucket V12.)

Yanmar wheel loaders data

Extra reporting by Marcia Doyle.