ASV enters definitive merger agreement with Yanmar

Grand Rapids, MN. – ASV Holdings, a provider of rubber-tracked compact track loaders and wheeled skid steer loaders, announced this week that it has entered into a definitive merger agreement with an affiliate of Yanmar Holdings.

Under the terms of the agreement, which been approved by both the ASV and Yanmar boards of directors, ASV stockholders will receive $7.05 in cash for each outstanding share of ASV common stock for a total value of $70.7 million. The ASV board of directors unanimously approved the agreement with Yanmar.

The combination of ASV’s compact track loaders and skid steer loaders with the compact equipment portfolio of Osaka, Japan-based Yanmar, creates a global provider of compact equipment with virtually no overlap in distribution networks.

The transaction is subject to approval by ASV stockholders and other customary closing conditions and is expected to close in the third quarter of 2019. In conjunction with the merger agreement, a subsidiary of Terex Corporation, which owns 34 percent of the outstanding shares of ASV, has entered into a stockholder voting agreement in support of the merger.

“We are excited to announce this value-maximizing transaction with Yanmar. Yanmar is a strong strategic buyer for ASV. 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,' said Andrew Rooke, ASV chairman and CEO. "In addition to maximizing value for ASV stockholders, the merger will create a strong platform for growth and expansion, bringing together two leading brands with similar cultures and creating value. The ASV product is complimentary to the Yanmar portfolio of compact equipment creating a comprehensive equipment solution for current and future customers."

Rooke said Yanmar will gain its only manufacturing facility in North America and will in return contribute its considerable global presence and financial strength.