WEST BEND, Wis. - Gehl Company, a manufacturer of construction and agricultural equipment, announced in late September that as a result of a slowing economy and inadequate proposals, it would not go through with plans to sell.
"After thouroughly reveiwing all potential alternatives and with the assistance of our financial advisors, the board unanimously concluded that it is in the best interest of all shareholders to continue to execute the long-term strategic plan outlined by the company in February 2001," said William D. Gehl, chairman, president and CEO.
Gehl, headquarted in West Bend, Wis., explained that the company received many acquisition offers but that the board concluded that all offers were either not at adequate price levels, were highly conditional, or both.
"We conducted an open and fair process, considering carefully each of the acquisition offers received for the company," Gehl stated. "We operate in cyclical industries and the timing of the process relative to the economic cycle, particularly in light of recent events and uncertainty in the global economy, did not work in the company's favor."
To bolster profitability, the company announced it will streamline operations by putting in motion several major plant rationalization initiatives. Under these initiatives, Gehl will close its manufacturing facility in Lebanon, Penn., and transfer production to other locations. Production of the Mustang line of skid steer loaders will be moved from its existing facility in Owatonna, Minn., to the Madison, S.D., facility.
According to a release, these consolidations are expected to take place immediately and be completed in 2002. As a result, the company's workforce will be reduced by 10 percent - or by 100 employees.
For more information on Gehl Company or its products, visit www.gehl.com.