CHICAGO – Allied Products Corporation announced June 26 that it completed the sale of its remaining 19.9 percent membership interest in Bush Hog L.L.C., a maker of agricultural, turf and landscape equipment, to an affiliate of Bush Hog Investors L.L.C., for approximately $28.4 million.
On March 7, Allied Products sold an 80.1 percent membership interest in Bush Hog L.L.C., to Bush Hog Investors for $127 million, subject to post-closing adjustments. Bush Hog L.L.C., based in Selma, Ala., consists of two businesses that formerly constituted the Agricultural Products Group of Allied Products. Those businesses are Selma-based Bush Hog and Great Bend Manufacturing Company, based in Great Bend, Kan.
Allied Products is scheduled to use the proceeds of this transaction to pay off an existing $18 million loan secured by its interest in Bush Hog L.L.C. for obligations to Bush Hog, L.L.C. and for working capital.
Richard Drexler, chairman, president and CEO of Allied Products, stated, "The sale of our remaining interest in Bush Hog was a necessary step toward establishing a new credit facility that will meet the company’s working capital needs as we go forward."
Allied Products consists of the Verson division, which manufactures large metal forming presses; the Verson Standard Products Division, which produces small metal forming presses; Verson Pressentechnik GmbH, a joint venture based in Germany that markets stamping presses and related systems; and Precision Press Industries, which fabricates large welded components.